Defense firms form united front against Hanwha's dominance
HD Hyundai, LIG open joint booth at SAS 2026 as Hanwha attends separately
Miniatures of defense products developed by HD Hyundai Heavy Industries and LIG Defense & Aerospace (D&A) are displayed at their joint exhibition booth during the Sea-Air-Space 2026 defense expo in Maryland, Monday. Courtesy of LIG D&A
The rapid growth of Hanwha Group's presence across sea, air and land defense systems is prompting local rivals to step up efforts to join forces and counter the conglomerate's dominance.
During the Sea-Air-Space (SAS) 2026 defense expo in the United States from Sunday to Wednesday, HD Hyundai Heavy Industries (HHI) and LIG Defense & Aerospace (D&A) opened a joint exhibition booth. They also operated a joint booth with Korea Aerospace Industries (KAI) at the World Defense Show 2026 in Saudi Arabia in February.
The moves were widely seen as an effort to draw attention away from Hanwha, whose three defense units — Hanwha Aerospace, Hanwha Ocean and Hanwha Systems — operated joint booths at both events.
"Unlike other Korean companies at SAS 2026 that shared a joint exhibition booth, Hanwha was the only Korean firm to operate a large standalone booth, drawing strong interest from visitors," Hanwha Ocean said in a press release Wednesday.
Attendees visit the joint exhibition booth of Hanwha Group's three defense units during the Sea-Air-Space 2026 defense expo in Maryland, Tuesday. Courtesy of Hanwha Ocean
HD HHI, LIG D&A and KAI also left out Hanwha in 2023, when they signed a memorandum of understanding on cooperation in developing next-generation warships. The agreement came as Hanwha expanded its presence in the naval shipbuilding market following its acquisition of Daewoo Shipbuilding & Marine Engineering, now Hanwha Ocean.
In 2024, HD HHI selected LIG D&A as the supplier of combat management systems and other key components for naval vessels built for the Peruvian Navy, instead of Hanwha Systems, its longtime partner.
The partnership with LIG D&A also led to HD HHI winning a 468.9 billion won ($317 million) project last year to upgrade three Jang Bogo-class submarines. The outcome surprised the market, as Hanwha Ocean has been considered to have greater prowess in submarine construction, while HD HHI has been seen as more competitive in surface vessels.
In the air and land defense system markets, Hyundai Rotem has taken the lead in efforts to curb Hanwha's expansion.
The defense unit of Hyundai Motor Group has competed with Hanwha Aerospace to supply the Republic of Korea Navy with a multipurpose unmanned vehicle.
Hyundai Rotem's recent plan to take over the artillery business from its affiliate Hyundai Wia has been viewed as a countermeasure against Hanwha's now-abandoned bid to acquire Poongsan's munitions business.
In collaboration with LIG D&A, Hyundai Rotem also began pushing last year to develop an engine for long-range air-to-air guided missiles. Missile engine development is one of Hanwha Aerospace's core businesses.
While its rivals are forming a united front to contain Hanwha's dominance, the conglomerate has focused on strengthening ties with U.S. partners to expand its presence in the North American market.
During SAS 2026, Hanwha Aerospace signed an agreement with Northrop Grumman to jointly develop a first-stage solid-fuel rocket for an advanced responsive strike missile system, while Hanwha Ocean partnered with Leidos Gibbs & Cox to enhance shipbuilding capabilities for the U.S. Navy and allied forces.