Hanwha Group Chairman Kim Seung-youn is poised to lead the group's key defense subsidiaries, as expectations rise that defense companies will experience a boost in exports to the United States under the Trump administration.
In a regulatory filing, Hanwha Aerospace, the group’s key affiliate manufacturing spacecraft engines and defense solutions, said Kim had been appointed as the firm's chairman. Kim also serves as chairman of the conglomerate's key subsidiaries, such as Hanwha Solutions and Hanwha Systems. Hanwha Systems is particularly one of the two major defense subsidiaries along with Hanwha Aerospace within the group.
The latest decision is seen as a strategic move by Kim to oversee the group’s international defense business, as the arms divisions are anticipated to secure more contracts from the world’s largest economy. This optimistic outlook stems from Trump’s repeated remarks about the necessity of boosting U.S. defense spending to "rebuild the country’s military" once he assumes office next year.
For any defense players, the U.S. is one of the most sought-after markets, as exports to the country pave the way for defense firms to receive more orders from other countries.
In June, Hanwha Systems and Hanwha Ocean acquired Philly Shipyard, a major U.S. shipbuilder, under their strategy of building it as a base to tap deeper into the U.S. warship market.
Kim is known to have a close relationship with Heritage Foundation co-founder Edwin Feulner who worked as a defense advisor to Trump. Kim was also invited to the inaugural ceremony of Trump back in 2017, but could not attend due to his health condition.
“The upcoming Trump administration will likely expand its defense spending and import more weapons,” an official in the defense industry said. “If Hanwha affiliates win new orders from the U.S., this will serve as a major opportunity for them to raise their global profile and achieve more orders across the globe”.