Combination of Defense Businesses
Minister of Trade, Industry & Energy Ju Hyung-hwan said on June 8 that the South Korean government is currently doing some consulting with regard to the combination of the defense business divisions of South Korean shipbuilders.
“Those in the domestic shipbuilding industry are conducting a research on global supply and demand, supply capacity and the like,” he explained, adding, “Our consulting team and the Korea Offshore & Shipbuilding Association are discussing the issue in order to draw up some portfolios.”
These days, it is said that a national defense contractor comparable to the Korea Aerospace Industries (KAI) can be created through the integration of the defense business units of Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, Hanjin Heavy Industries and STX Offshore & Shipbuilding.
The KAI was established back in 1999, led by the South Korean government, during the restructuring of large South Korean corporations in the middle of the financial crisis at that time. The KAI is a combination of former Daewoo Heavy Industries & Machinery, Samsung Aerospace Industries and Hyundai Space & Aircraft.