No Need to Sell KAI, Bank Head Says
The Export-Import Bank of Korea (Korea Eximbank) has dismissed the rumor that the state-run bank would sell off Korea Aerospace Industries (KAI) to Hanwha Group.
"We have no plan to sell off KAI,” said Yoon Hee-sung, chairman and president of Korea Eximbank. “There is no need to sell KAI, either.”
Yoon made this statement at a general meeting of the National Assembly Planning and Finance Committee on Feb. 22 in response to a question from Rep. Park Dae-chool of the People Power Party.
After state-run Korea Development Bank recently announced the sale of Daewoo Shipbuilding & Marine Engineering (DSME) to Hanwha Group, some experts forecast that Korea Eximbank might also start a process to privatize KAI. In particular, a rumor has it that Hanwha Group will pursue the acquisition of KAI following DSME in order to become an integrated defense company producing land, sea, and air defense hardware and software.
“Since the outbreak of the war in Ukraine, demand for weapons has revived, improving KAI’s business performance, pushing up its stock price and spreading the rumor, I think,” Yoon said.
“I think that the rumor about the sale of KAI arose from the speculation that the Korean government may do a favor for Hanwha Group as it eased the government’s burden by taking over money-losing DSME,” Yoon said. “Hanwha acquired DSME based on its business strategy and there is no such dual contract.”
“There is nothing currently under consideration,” Yoon stressed about the possibility of selling off KAI shares in the future. “I am against the sale of KAI shares.”