Why is Hanwha Group investing $299 million in its U.S. defense subsidiaries?

The investments are meant to expand Hanwha’s presence in the U.S. defense procurement market. The group said the move is in line with its growing presence in the market and its broader push into strategic defense assets in the United States.

How will Hanwha Group split the $299 million investment between Hanwha Defense USA and Hanwha Futureproof?

Hanwha Aerospace will put $149 million into Hanwha Defense USA, and Hanwha companies will subscribe to a $150 million rights offering by Hanwha Futureproof. For the Futureproof offering, Hanwha Aerospace will cover half, Hanwha Ocean 18.75 percent, Hanwha Systems 18.75 percent, and Hanwha Solutions 12.5 percent.

What recent U.S. defense deal is driving Hanwha Defense USA’s expansion?

Hanwha Defense USA was chosen to develop prototypes for a U.S. Army wheeled self-propelled artillery program. The company will supply six K9MH systems, with an option for 12 more, and the deal could grow beyond $7 billion because it is the sole contractor for the program.

Hanwha Group to invest $299 mil. into US defense subsidiaries

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Summary

Hanwha Group will invest $299 million into its U.S. defense subsidiaries to expand its presence in the American defense procurement market. The money will go to Hanwha Defense USA and Hanwha Futureproof through rights offerings. Hanwha Aerospace will invest $149 million in Hanwha Defense USA, while Hanwha companies will also subscribe to a $150 million rights offering by Hanwha Futureproof. The move follows Hanwha Defense USA’s recent selection for a U.S. Army wheeled artillery prototype program.

Key Facts

Hanwha Aerospace’s $149 million investment in Hanwha Defense USA is about 30 percent larger than its cumulative 159.7 billion won investment in the subsidiary so far.
Hanwha Futureproof is a unit focused on investing in strategic assets in the U.S., and Hanwha companies will subscribe to its $150 million rights offering.
Hanwha Defense USA was selected last week to develop prototypes for a U.S. Army program to introduce wheeled self-propelled artillery systems.
The U.S. Army agreement covers six K9MH systems with an option for 12 additional systems, and it has a total cumulative value of $262.9 million.
Hanwha Defense USA leased an idle plant in Opelika, Alabama, in April and began investing about $2 million to build an integration and testing facility for the K9MH.

By Nam Hyun-woo

Published Aug 23, 2026 3:14 pm KST
Updated Aug 23, 2026 3:35 pm KST

Hanwha Aerospace's K9MH wheeled self-propelled howitzer system / Courtesy of Hanwha Aerospace

Hanwha Group will make investments worth $299 million (415 billion won) into its U.S. subsidiaries, as the group seeks to expand its presence in the country’s defense procurement market.

According to industry officials Sunday, Hanwha Group recently decided to make investments into Hanwha Defense USA and Hanwha Futureproof, by subscribing to shares to be issued through rights offerings by the two companies.

Among them, Hanwha Aerospace will invest $149 million in Hanwha Defense USA, the former’s wholly owned subsidiary which oversees the group’s land defense business in the U.S.

The latest investment alone is about 30 percent larger than Hanwha Aerospace’s cumulative 159.7 billion won of investment into the subsidiary so far.

Hanwha companies will also subscribe to a $150 million rights offering by Hanwha Futureproof, a unit focused on investing in strategic assets in the U.S. Hanwha Aerospace will contribute half of the amount, while Hanwha Ocean and Hanwha Systems will each cover 18.75 percent and Hanwha Solutions the remaining 12.5 percent.

The investments are in line with Hanwha’s growing presence in the U.S. defense market.

Last week, Hanwha Defense USA was selected to develop prototypes for a U.S. Army program to introduce wheeled self-propelled artillery systems, through which the company will supply six K9MHs, a wheeled system based on its K9 self-propelled howitzer, with an option for 12 additional systems.

The agreement has a total cumulative value of $262.9 million, but the amount could grow to over $7 billion because Hanwha Defense USA was selected as the sole contractor for the program, putting it in a likely position to handle future mass production.

For this, Hanwha Defense USA in April leased an idle plant in Opelika, Alabama, for three years and began investing about $2 million to establish an integration and testing facility for the K9MH.

Along with its land defense business, Hanwha is seeking to expand its strategic investments across the U.S. defense sector. The group is also expanding its naval defense business around Philly Shipyard and pursuing the acquisition of Austal USA.

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