Chairman Kim Seung-yeon of Hanwha Group.

Hanwha Group has been pushing its defense sector hard this year, with the expectation that it can help turn around the group’s operation after it achieves economies of scale. It’s part of the group’s management strategy for 2016.

The top management of the group laid the groundwork for growth in the defense sector by making daring investments in the past decade, which is a big reason why the group is out to refocus and fight off any kind of negative economic problems on its path to continued growth.

The group won the government’s support in developing the “Cheonmu” 230 mm-class multiple launch rocket, which now has become part of the Korean military’s major firepower system with an investment of 10 billion won. The multiple launch system did not go through the exploration and experiment stages for development, with Hanwha Corp. kicking off the development of the system in 2009 and wrapping up the project four years and six months later before becoming part of the Korean military’s major fire power system.

Hanwha possesses the technological capacity in all areas of nucleus guided weapons system starting with warheads, fuse, navigation equipment, exploration equipment, computers for guided weapons control, propulsion equipment, and actuating equipment, among others, nucleus parts for the guided weapons system to make Hanwha Corp. the only company with such a vast array of technologies in the defense industry in Korea. The fact that the company grew so fast to become an integrated defense industrial company by acquiring the guided weapons technologies shows whey the company became the only defense industrial company in Korea.

The company’s plant in Kumi, North Gyeongsang Province, turns out more than 90 percent of guided weapons and the new fuses for the bullets used by the military. Hanwha Techwin has made a great contribution to the Korean economic growth by playing a major role in the development of the precision weapons industry including the development of self-propelled guns.

In his 2016 New Year's address, Chairman Kim Seung-youn said, "We have pushed through an intense regimen of business reorganization despite the slowdown in growth of many of our core businesses. Looking several decades ahead, we have focused on strengthening our competitive capabilities through proactive measures. We aim to boost our key capabilities to global standards by concentrating on what we do best. 

“Defense and chemicals, areas in which we have now cemented our leadership, are businesses that both the preceding chairman and myself have held a passion and dedication since the first days of our service to the company, and I hope that every member of the Hanwha family, bolstered by a clear sense of mission and purpose, will strive to take our company to the top," he added. 

With the acquisition of Hanwha Techwin and Hanwha Thales as Hanwha Group subsidiaries, Hanwha Group's defense business, which has served as the core driver of growth for the past six decades with Hanwha Corporation at its center, reached the top spot in Korea with total annual sales of over $2.4 billion. Hanwha Group also gains new inroads into future industries including precision machinery and electronics and IT.

Hanwha Group, founded in 1952, is one of the top-10 business enterprises in South Korea and a Fortune Global 500 company. Hanwha Group has 58 domestic affiliates and 193 global networks in three major sectors: manufacturing and construction, finance, and services and leisure.

With more than 60 years under its belt in industrial leadership, Hanwha’s manufacturing and construction businesses encompass a broad range of fields from basic chemicals and advanced materials to property development and total solar energy solutions. The finance network, covering banking, insurance, asset management and securities, is the second largest non-bank finance group in South Korea. The services and leisure sector offers premium lifestyle services with retail and resort businesses. 

A view of the 230-mm class multiple launch rocket, “Cheonmu” a key part of Korean military’s firepower.