AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kim Hee-su
Kim Hee-su김희수
ReporterMinistry of Foreign Affairs, Seoul City Hall & Defense, Foreign Affairs
Kim Hee-su is a bilingual reporter at AJU Press, covering defense and foreign affairs. Before joining AJP in 2025, she worked at The Korea Times, where she wrote interview stories, including a profile of North Korean defector Kim Gum-hyok, and produced digital content. She also previously worked as a researcher for KBS News 9’s International News Department, supporting correspondents in 10 countries around the world. She graduated from the University of Toronto in Canada with a double major in Book and Media Studies and East Asian Studies. "I'm driven by storytelling."
Latest by Kim Hee-su
  • South Koreas pension fund sees $128B drop in stock holdings value
    South Korea's pension fund sees $128B drop in stock holdings' value SEOUL, October 18 (AJP) - The estimated value of South Korea's National Pension Service (NPS) stock holdings fell by 182.4 trillion won ($128 billion) in just over three months, driven largely by sharp declines in Samsung Electronics and SK hynix shares, industry data showed Sunday. According to financial data provider FnGuide, the combined market value of the NPS's stakes in 287 listed companies, in which it disclosed holdings of at least 5 percent as of June 30 or Oct. 15, fell from 515.9 trillion won to 333.5 trillion won. The decline of 35.3 percent marked the first negative quarterly performance in the disclosed holdings' market value since the fourth quarter of 2024, ending a six-quarter run of gains. Samsung Electronics and SK hynix, which had previously driven much of the pension fund's investment gains, accounted for 131.1 trillion won, or 71.8 percent, of the total decline. The estimated value of its SK hynix holdings dropped by 74.2 trillion won, while Samsung Electronics accounted for another 56.9 trillion won. During the period, Samsung Electronics shares fell from 334,000 won to 210,000 won, while SK hynix shares plunged from 2.65 million won to 1.26 million won. As of Oct. 15, the NPS held stakes of 7.84 percent in Samsung Electronics and 7.32 percent in SK hynix. Other major declines included SK Square, whose holdings lost 10.9 trillion won in value, and Samsung Electro-Mechanics, which recorded a decline of 7.6 trillion won. Overall, 176 of the 287 companies recorded decreases in the estimated value of the pension fund's holdings. However, some investments posted gains. SK Innovation led with an increase of 904.1 billion won as the NPS raised its ownership stake from 6.03 percent to 7.14 percent. S-Oil and LG Energy Solution followed with gains of 710.7 billion won and 580.8 billion won, respectively. The NPS increased its stakes in 84 companies while reducing its holdings in 82 others. Among the largest increases were GS Engineering & Construction, Hyundai Marine & Fire Insurance and Binggrae, while stakes in Paradise and Samsung Biologics were significantly reduced. The NPS also trimmed its holdings in several Kosdaq-listed companies, with 21 Kosdaq stocks among those seeing ownership reductions, compared with seven among those receiving increased investment. The decline comes amid criticism that the NPS failed to cushion the market against heavy selling by foreign investors. However, the figures reflect changes in the estimated market value of disclosed shareholdings between June 30 and Oct. 15, rather than realized investment losses or the NPS's overall investment return. 2026-10-18 13:54:42
  • BOK eyes January launch of cross-border won payment system
    BOK eyes January launch of cross-border won payment system SEOUL, October 18 (AJP) - The Bank of Korea (BOK) is testing an international version of its payment system to facilitate cross-border transactions in Korean won, with a formal launch targeted for January 2027, Governor Hyun Song Shin said Saturday. Speaking at the Group of Thirty (G30) International Banking Seminar in Bangkok, Thailand, held alongside the G20 and International Monetary Fund meetings, Shin outlined the central bank's plans to expand its large-value payment network, BOK-Wire, internationally. The proposed system would allow cross-border won payments without requiring accounts at domestic banks, marking a step toward improving international payment efficiency. Shin said the 1997 Asian financial crisis had made countries including South Korea cautious about opening up their payment systems and financial markets, but that it was time to move forward. "All settlements are made in central bank money," Shin said, emphasizing the importance of maintaining the singleness of money across payment systems. "The singleness of money is absolutely crucial," he added, particularly in wholesale finance, where reliable and consistent settlement is essential. Shin said central banks have an important role in overcoming obstacles to cross-border payments through improvements to settlement infrastructure. He also warned that the growing use of artificial intelligence (AI) in finance could create new risks to financial stability as financial institutions increasingly adopt similar strategies, potentially amplifying market shocks. Describing AI as a "very clever black box," Shin highlighted its limited transparency and the challenges it poses for regulators. "The lack of transparency is something we are already familiar with from a series of financial crises," he said, pointing to traditional safeguards such as capital requirements, leverage limits and collateral. Shin compared the risks to the Millennium Bridge incident in London, where pedestrians adjusting their movements to maintain balance unintentionally amplified the bridge's swaying. Similarly, financial institutions responding to market stress in similar ways could collectively intensify instability, he explained. Shin stressed that reducing leverage, strengthening capital buffers and reinforcing financial safeguards remain essential to maintaining stability as AI becomes more widely adopted in financial markets. 2026-10-18 12:40:00
  • Samsung Electronics unions clash over control of 2027 wage talks
    Samsung Electronics unions clash over control of 2027 wage talks SEOUL, October 18 (AJP) - Tensions are rising among Samsung Electronics' labor unions over next year's wage and collective bargaining negotiations, as unions representing its semiconductor and consumer electronics divisions disagree over who should lead the talks. The Samsung Group Super-Enterprise Labor Union's Samsung Electronics chapter, the company's largest union, has begun preparing its proposals for the 2027 negotiations, expecting to secure the position of sole bargaining representative. However, the Donghaeng Union and the National Samsung Electronics Union (NSEU) have challenged the move, arguing that a bargaining representative has yet to be officially selected. According to industry sources on Sunday, Donghaeng plans to formally reject a request from the largest union to submit its proposals for the upcoming negotiations. On Oct. 15, the Super-Enterprise Union asked the two unions to submit their demands ahead of its policy committee meetings scheduled for Oct. 29 and 30. The Super-Enterprise Union said it expected to become the bargaining representative in December and asked the other unions to submit their proposals ahead of negotiations. However, Donghaeng and the NSEU rejected the request, arguing that no bargaining representative had been selected and the formal process had yet to begin. "It is inappropriate to submit bargaining proposals on the assumption that a particular union will become the bargaining representative," the NSEU said. The union added that it would submit its proposals once the bargaining representative was officially determined. Under South Korean labor rules, multiple unions at the same workplace must establish a unified bargaining channel before negotiating with management. If they fail to agree on a representative, a union representing a majority of eligible union members can secure that position following verification by the Labor Relations Commission. The Super-Enterprise Union currently has about 53,000 members, compared with roughly 31,000 at Donghaeng and 24,000 at the NSEU. The largest union expects to secure bargaining rights based on its membership strength. The dispute also reflects growing divisions between Samsung's Device Solutions (DS) division, which oversees its semiconductor business, and Device eXperience (DX) division, which covers smartphones, televisions and home appliances. The Super-Enterprise Union previously voted to focus on DS employees and announced plans to pursue separate wage negotiations for the semiconductor division. Donghaeng, which represents mainly DX employees, has opposed the approach, arguing that their interests were overlooked in the wage agreement reached between Samsung Electronics and its unions in May. It has called for a joint bargaining framework that would allow DX employees to participate alongside their DS counterparts. The disagreement comes amid a widening performance gap between Samsung's semiconductor and consumer electronics businesses, raising concerns that the unions could struggle to establish a common negotiating position before formal talks begin. 2026-10-18 09:42:43
  • Solidigms US IPO push raises concerns over double listing
    Solidigm's US IPO push raises concerns over double listing SEOUL, October 18 (AJP) - Solidigm, a U.S.-based subsidiary of SK hynix, is reportedly accelerating preparations for a potential U.S. stock market listing, raising concerns in South Korea over shareholder dilution and the impact of multiple listings within SK Group. The company has selected Goldman Sachs and Morgan Stanley as lead underwriters for a possible initial public offering (IPO) next year, according to industry sources and foreign media reports on Sunday. Solidigm could seek a valuation of up to $150 billion and raise as much as $15 billion through the offering, according to foreign media reports. The company has also strengthened its government relations operations in Washington, hiring former Qualcomm executive Andres Castrillon as vice president for government affairs and engaging Ballard Partners, a lobbying firm led by Brian Ballard, a close ally of U.S. President Donald Trump. Solidigm said it hired Ballard Partners to advise on U.S. semiconductor manufacturing, trade and regulatory matters. The potential IPO comes as demand for enterprise solid-state drives (eSSDs) used in artificial intelligence data centers continues to grow. Solidigm was established after SK hynix acquired Intel's NAND flash memory and SSD business in 2021. A U.S. listing could help finance manufacturing expansion and research and development while easing SK hynix's investment burden. However, the plan has raised concerns that issuing shares to outside investors could reduce SK hynix's ownership stake in Solidigm and potentially weaken shareholder value. The Korea Corporate Governance Forum has criticized SK Group's multilayered ownership structure, warning that a separate Solidigm listing could further discount the market value of its parent companies. "The principle of protecting parent company shareholders should also apply to overseas multiple listings," said Rep. Oh Gi-hyoung of the ruling Democratic Party on Oct. 15, urging SK hynix's board to explain the rationale and potential shareholder impact of the IPO. Rep. Na Kyung-won of the opposition People Power Party also called for a comprehensive review of the listing plans, emphasizing shareholder interests. However, some analysts argue that the capital raised could generate enough growth to offset the impact of a reduced ownership stake. Bloomberg Intelligence said in an Oct. 15 report that increased investment in production capacity and research and development could accelerate Solidigm's earnings growth. SK hynix has maintained that no decision has been made on the IPO, while suggesting that a separate listing could help Solidigm receive a more accurate market valuation. "Our principle is to ensure that shareholder value is not harmed, regardless of the financing method," an SK hynix official said. 2026-10-18 08:56:58
  • Ukraine POW disclosure complicated Seouls diplomacy: US experts
    Ukraine POW disclosure complicated Seoul's diplomacy: US experts SEOUL, October 16 (AJP) - Ukraine's public disclosure of the transfer of two North Korean prisoners of war to South Korea has complicated President Lee Jae Myung's efforts to restore dialogue with Pyongyang and improve relations with Moscow, U.S. experts said Thursday. The assessment came during a discussion hosted by the Center for Strategic and International Studies (CSIS), where former U.S. officials and Korea specialists examined the diplomatic fallout from Ukrainian President Volodymyr Zelenskyy's announcement. Zelenskyy disclosed during his September address to the U.N. General Assembly that Ukraine had transferred two captured North Korean soldiers to South Korea, triggering a diplomatic dispute over whether the announcement violated a confidentiality agreement. Sydney Seiler, a senior adviser at CSIS and former U.S. special envoy for Six Party Talks, said Seoul had sought to handle the issue quietly to avoid antagonizing North Korea and Russia as it pursued broader diplomatic objectives. He suggested that Zelenskyy's announcement undermined Seoul's approach by forcing the Lee administration to publicly address an issue it had hoped to keep out of the spotlight. "Pyongyang has been quiet on the issue because it would contradict their own narrative of these great heroes going out to fight and die for their country," Seiler said. Emma Chanlett-Avery of the Asia Society Policy Institute said the disclosure was particularly sensitive because the prisoners were North Korean soldiers rather than ordinary defectors. "They're not regular defectors," Chanlett-Avery said, noting that the soldiers were part of North Korea's narrative portraying its troops fighting alongside Russia as war heroes. She also warned that the public disclosure could put the soldiers' families in North Korea at risk of retaliation, while adding to domestic criticism of Lee's conciliatory approach toward Pyongyang. Victor Cha, president of the Geopolitics and Foreign Policy Department and Korea Chair at CSIS, said Seoul's reaction also reflected its longer-term interests in restoring economic relations with Russia. Cha outlined several possible explanations for Zelenskyy's announcement, including a lack of awareness of Seoul's diplomatic sensitivities, a psychological operation targeting Pyongyang or an effort to highlight North Korea's growing military support for Russia. He suggested that Kyiv may have sought to impose political costs on Pyongyang for supporting Russia's war effort, while emphasizing that Zelenskyy's motives remained uncertain. "It's best not to fight these things out in the press," Cha said, warning that the public dispute reflected deteriorating relations between Seoul and Kyiv. The experts also warned that deepening military cooperation between North Korea and Russia could continue beyond the Ukraine war, complicating Seoul's efforts to restore relations with Moscow. Despite the dispute, they expected South Korea to continue providing humanitarian assistance to Ukraine while remaining cautious about supplying lethal weapons that could provoke Russian retaliation. 2026-10-16 09:59:38
  • Seoul weighs Cheonghae mission extension amid Hormuz concerns
    Seoul weighs Cheonghae mission extension amid Hormuz concerns SEOUL, October 16 (AJP) - South Korea is considering extending its Cheonghae anti-piracy mission beyond December, but has yet to finalize the details, the defense ministry said Friday. The clarification came after reports that the military was reviewing plans to extend the unit's operational area from the Gulf of Aden to the Gulf of Oman, near the Strait of Hormuz, and potentially deploy additional surveillance aircraft. "Piracy activity in the Gulf of Aden off Somalia has increased sharply compared with previous years, and security conditions in the region have deteriorated," an official from the Ministry of National Defense's spokesperson's office told AJP. "The Cheonghae Unit is currently carrying out missions specified in its deployment authorization in the Gulf of Aden, with its mandate scheduled to expire on Dec. 31, 2026," the official said. "The government is considering submitting a proposal to extend the Cheonghae Unit's deployment before the current authorization expires, but no specific details have been decided," the official added. The Cheonghae Unit has operated in the Gulf of Aden since 2009, conducting anti-piracy missions and supporting the safe passage of commercial vessels, including South Korean ships. Its current deployment consists of a 4,400-ton destroyer, a naval helicopter, up to three rigid-hull inflatable boats, and a contingent of up to 320 personnel. The Gulf of Oman connects to the Strait of Hormuz, a strategically important waterway for global energy shipments. The possible expansion has raised questions over whether strengthening the Cheonghae Unit's mission could amount to an indirect deployment in response to Washington's earlier request for South Korean military support near Hormuz. President Lee Jae Myung said during a Sept. 18 press conference that South Korea would not deploy troops to participate in or intervene in a war, while acknowledging that the government was considering ways to strengthen the Cheonghae Unit's existing activities. Under the current parliamentary approval, the Cheonghae Unit operates mainly in the Gulf of Aden off Somalia but can also carry out missions in other waters when needed to protect South Korean nationals. The government is considering seeking parliamentary approval to extend the Cheonghae Unit's deployment beyond Dec. 31, but has yet to finalize the details. 2026-10-16 09:32:42
  • Seoul, USFK look at different timetables for wartime OPCON transfer
    Seoul, USFK look at different timetables for wartime OPCON transfer SEOUL, October 15 (AJP) - South Korea and U.S. Forces Korea are sounding like a broken record as they repeat differing views over the conditions and timing for transferring wartime operational control to Seoul. Gen. Xavier Brunson, commander of U.S. Forces Korea (USFK), argued Wednesday in Washington that changes in the security environment and military planning require updated standards for the handover. “Because the conditions have changed, because we’ve changed our plan, we have new standards which we have to uphold,” Brunson said at an Indo-Pacific security forum hosted by the Gold Institute for International Strategy. Brunson described himself as a supporter of the transfer but stressed that it should depend on military capabilities rather than a political timetable. His remarks came as Seoul seeks to complete the transfer before President Lee Jae Myung’s term ends in 2030. Seoul remains firm to the original timetable. The defense ministry reaffirmed Thursday that the process should follow the conditions and evaluation criteria previously agreed upon by the allies. “If the goalposts keep moving, I think the transfer can never happen,” ministry spokesperson Jeong Bit-na said at a regular briefing, emphasizing that this was her personal opinion rather than the ministry’s official position. She said the South Korean military had spent the past 20 years working to meet the agreed conditions. The ministry’s official position remains that the transfer will proceed once those conditions are met, she said. The allies are continuing close consultations under the existing transition plan. Brunson cited North Korea’s recent missile launches as evidence of the changing security environment. Pyongyang has conducted missile tests on three occasions this month. It test-fired an intermediate-range hypersonic ballistic missile on Oct. 3, followed by multiple ballistic missile launches on Oct. 12, with at least one traveling more than 900 kilometers. On Oct. 14, it tested two types of submarine-launched strategic cruise missiles in the East Sea. The launches followed a Sept. 21 land mine explosion inside the Demilitarized Zone that injured three South Korean soldiers. South Korea’s military concluded on Oct. 5 that North Korean troops had deliberately planted antipersonnel mines south of the Military Demarcation Line. Pyongyang has denied responsibility. The dispute centers on how such developments should affect the handover process. Neither side has formally announced changes to the jointly agreed criteria, and Brunson did not specify which standards had changed or whether they would require a revision of the agreement. “The recent differences appear to reflect a more fundamental gap in how the two sides approach the OPCON transfer, rather than simply whether the conditions have been met,” said Jung Kyeong-woon, a research fellow at the Korea Association of Military Studies. The researcher suggested that Seoul’s push to complete the transfer within the current administration could be creating friction over whether additional requirements should enter the evaluation process. Under the Conditions-based OPCON Transition Plan agreed upon in 2015, the handover depends on three broad requirements: South Korea’s ability to lead combined defense operations, the alliance’s capability to counter North Korea’s nuclear and missile threats, and a security environment conducive to a stable transition. The allies assess readiness through three stages: Initial Operational Capability, Full Operational Capability and Full Mission Capability. The process is in the second stage. Seoul aims to complete Full Operational Capability verification this year and propose a target year for the transfer, although differing assessments of military readiness could complicate that timetable. The ministry spokesperson said Seoul would seek to resolve outstanding differences through bilateral consultations based on the existing conditions and evaluation criteria ahead of the annual Security Consultative Meeting. The meeting, normally held in late October or early November, is reportedly being considered for December. A date has not been finalized. The latest exchanges contrast with Defense Minister Kang Shin-chul’s remarks to lawmakers on Oct. 7 that the allies had no significant differences over the transfer. Both sides continue to endorse a conditions-based handover. The unresolved question is whether the conditions Seoul has been working toward will remain the benchmark as the security environment changes. 2026-10-15 17:36:11
  • South Koreas laser air defenses down all three drones in Army drill
    South Korea's laser air defenses down all three drones in Army drill SEOUL, October 15 (AJP) -South Korea showcased its latest laser air-defense systems by intercepting all three drones deployed in an Army demonstration, Hanwha Systems said Thursday. The demonstration sported Cheongwang, a laser weapon already in military service, and a vehicle-mounted 30-kilowatt high-energy laser system. It added to a series of successful live-fire demonstrations as the company develops more powerful mobile systems for overseas markets. The event took place Wednesday during the Army TIGER+ exercise, which uses advanced weapons and combat systems to prepare troops for future battlefield conditions. About 500 military officials, industry representatives and researchers attended, including Army Chief of Staff Kim Gyu-ha. The three successful interceptions followed a September demonstration at the Army’s Seungjin training ground, where Cheongwang intercepted four drones and two other unmanned aircraft in succession, according to the company. Developed by the Agency for Defense Development with Hanwha Systems participating as the prototype contractor, Cheongwang is also known as the Block-I laser air-defense weapon. The company puts its firing cost at about 2,000 won per shot. Powered by electricity, the system does not require conventional ammunition replenishment, offering a potential cost advantage against inexpensive drones. Hanwha Systems said it can operate continuously as long as power is supplied. The vehicle-mounted system demonstrated alongside Cheongwang was developed by Hanwha Systems under a project managed by the Korea Research Institute for Defense Technology Planning and Advancement. Its main components have been reduced in size and weight for installation on combat vehicles. A cooling system that absorbs heat through changes in a material’s physical state helps manage temperatures during high-power operation. The company said those features improve mobility and operational stability. The demonstrations come as inexpensive drones increasingly serve as attack weapons as well as reconnaissance platforms, driving demand for defenses that can engage them without relying solely on costly guided missiles. Hanwha Systems is also developing a 50-kilowatt laser-equipped armored vehicle for overseas customers, with completion targeted for 2027. 2026-10-15 13:12:27
  • North Korea tests cruise missiles as US surveillance aircraft fly over peninsula
    North Korea tests cruise missiles as US surveillance aircraft fly over peninsula SEOUL, October 15 (AJP) - North Korea test-fired two types of submarine-launched strategic cruise missiles in the East Sea on Wednesday as U.S. reconnaissance aircraft were tracked flying over the Korean Peninsula on the same day. The Korean Central News Agency (KCNA) reported on Thursday that the country's Missile Administration conducted the tests on Oct. 14, without providing further details on the launch location or flight performance. Kim Jong-sik, first vice department director of the Workers' Party Central Committee, and Jang Chang-ha, head of the Missile Administration, observed the launches alongside naval engineers specializing in underwater weapons systems. "The test launches contributed to checking the routine operational readiness of underwater combat systems and improving the navy's ability to carry out strategic missions," KCNA reported. The tests also demonstrated the reliability and capabilities of North Korea's war deterrence systems, the agency said, adding that the launches had no negative impact on neighboring countries. The report appeared only on KCNA, North Korea's external state news agency, and was not carried by the Rodong Sinmun, the ruling Workers' Party's official newspaper distributed to the domestic population. South Korea's military did not publicly announce the launches but said it had been aware of the activity. "We do not normally announce cruise missile launches. We only announce ballistic missile launches," the public affairs chief of South Korea's Joint Chiefs of Staff (JCS) told AJP. "We were aware of the launch-related activity yesterday," the official added. Meanwhile, a U.S. Navy MQ-4C Triton high-altitude unmanned reconnaissance aircraft was tracked flying over the central Korean Peninsula and the East Sea for about nine hours on Wednesday, according to a report by Voice of America (VOA), citing flight-tracking data from Flightradar24. The MQ-4C Triton departed Okinawa, Japan, at around 2 a.m. Wednesday, reached waters south of the Korean Peninsula around 4 a.m. and entered South Korean airspace near Ansan, Gyeonggi Province, at approximately 5 a.m. It then made about 10 back-and-forth flights between central South Korea and the East Sea before leaving the peninsula around 1 p.m., VOA reported. The Triton is a U.S. Navy high-altitude, long-endurance intelligence, surveillance and reconnaissance (ISR) aircraft designed to monitor large maritime and coastal areas. A U.S. Army reconnaissance and electronic warfare aircraft known as ARES was also tracked flying between the East and West Seas. According to VOA, the ARES aircraft departed the Pyeongtaek area at 11:48 p.m. Tuesday and returned at 8:11 a.m. Wednesday after conducting multiple flights over the East and West Seas. ARES is designed to collect electronic intelligence, including communications and radar signals, and is known to support intelligence-gathering operations related to North Korea. U.S. Forces Korea declined to comment on specific military capabilities or assets for operational security reasons, VOA reported. The command said it remained focused on maintaining a strong and combat-ready military posture on the peninsula and reaffirmed Washington's commitment to South Korea's defense. 2026-10-15 08:23:27
  • Hanwhas grip on Koreas fighter jet maker sparks worker revolt
    Hanwha's grip on Korea's fighter jet maker sparks worker revolt SEOUL, October 14 (AJP) - Hundreds of Korea Aerospace Industries (KAI) workers made the five-hour journey to Seoul on Wednesday to rally near the presidential office at Cheong Wa Dae, protesting defense powerhouse Hanwha Group’s aggressive bid for South Korea’s sole aircraft manufacturer. About 850 to 900 workers from Sacheon, South Gyeongsang Province, joined the first of three planned demonstrations involving KAI’s roughly 3,800 union members. “We’ve protested outside the Fair Trade Commission before, but fewer than 100 workers attended then,” Lim Byung-jin, publicity director of the KAI labor union, told AJP. “The second rally is confirmed for October 20, with about 1,200 workers expected. We’re still coordinating the third rally, which will likely take place in early November,” he added. Among the protesters was Choi Young-jin, who joined one of KAI’s predecessor companies in 1995, four years before KAI was formally established. “It feels like Hanwha is getting KAI for next to nothing,” Choi said. He described the mood inside the company as sour. By his estimate, more than 90 percent of employees view Hanwha’s growing involvement negatively, and the concern runs deepest among veterans who helped build the aircraft maker. The protests follow Hanwha’s accumulation of a combined 15.89 percent stake in KAI through three affiliates: Hanwha Aerospace with 9.90 percent, Hanwha Systems with 4.98 percent and Hanwha Aerospace USA with 1.01 percent. Now KAI’s second-largest shareholder, the conglomerate changed the stated purpose of its holdings from simple investment to management participation in May. The state-run Export-Import Bank of Korea remains the largest shareholder with 26.41 percent. Supplier independence Lim said the union’s central concern is that Hanwha’s growing influence could erode KAI’s ability to choose its suppliers independently, particularly for fighter jet and export programs. Hanwha already spans several defense segments, including aircraft engines, radar, avionics and weapons. KAI, for its part, is a major aircraft manufacturer and systems integrator. Lim pointed to the KF-21 fighter program, which uses equipment from Hanwha, LIG D&A and other domestic and overseas manufacturers. According to Lim, Hanwha supplies roughly 120 equipment items for the program and LIG D&A around 70. The figures were provided by the union and could not be independently verified. “If Hanwha takes control of KAI, whose products would KAI choose? Hanwha’s products,” Lim said. He argued that rival suppliers could gradually lose out regardless of their technological merits. He said procurement works differently for government-funded defense projects and for aircraft export contracts. In domestic government programs, defense authorities set many equipment requirements and procurement arrangements. That limits KAI’s ability to replace designated components on its own. Export programs can offer more flexibility, depending on customer requirements, allowing KAI to compare competing products and negotiate prices with suppliers. Lim offered a hypothetical: Hanwha equipment priced at 10 million won against an overseas alternative at 5 million won. Under independent management, he said, KAI could pick the cheaper option or press Hanwha to cut its price or improve its product. His concern is that such choices could become harder if Hanwha gains control of KAI’s management. The union argues that concentrating aircraft manufacturing and key component businesses under one conglomerate could weaken rival defense manufacturers and smaller suppliers. That, it says, could affect prices, delivery schedules and product quality. Lim, who said he has worked at KAI for 16 years, said many of Wednesday’s demonstrators had been with the company and its predecessors for more than three decades. “Everyone wants the company they work for to grow. But Hanwha isn’t the answer,” Lim said. He also raised the prospect of restructuring, citing Hanwha’s past acquisitions of defense businesses, including Samsung Techwin, Samsung Thales and Doosan DST. Lim questioned whether a future owner might sell off unprofitable divisions or transfer workers to other subsidiaries. “There are certainly concerns that the business I have worked in could disappear, or that a colleague working next to me could be transferred to another business or company,” Lim said. Those concerns remain hypothetical. No acquisition or restructuring plan for KAI has been formally announced. The union also challenged a 1.8 billion-won ($1.25 million) consultancy project by the Export-Import Bank on strengthening the aerospace industry’s competitiveness. According to the union, the study covers assessments of individual companies, plans to develop leading aerospace firms, implementation road maps and financing strategies. The union said the bank told its representatives in May that the government was not considering a sale of KAI or any change to its ownership structure. It questioned why the bank was pursuing such a study only months later, after Hanwha raised its stake and formally declared its intention to participate in management. A union protest poster accused the bank of running a disguised consultancy in preparation for privatization. No government decision to privatize KAI has been announced. The union demanded that the bank disclose who authorized the project, which institutions were consulted and whether the study is linked to any possible sale or restructuring of KAI. The rally drew support from the Federation of Korean Trade Unions, representatives of the LIG D&A labor union and civic groups from Sacheon, where KAI is headquartered. Speakers warned that a change in KAI’s ownership could ripple beyond its employees. They said it could also affect research and development, local suppliers and the wider aerospace cluster around Sacheon. KAI was established in 1999 under the Kim Dae-jung administration through a government-led consolidation of the aerospace industry. It has since played a central role in developing domestically produced aircraft, including the KF-21 fighter. Kim urged President Lee Jae Myung to honor his earlier commitment to developing the aerospace industry around KAI and protecting the industrial base in South Gyeongsang Province. Hanwha has said its expanded investment is intended to strengthen cooperation with KAI and improve South Korea’s global competitiveness in aerospace and defense. The conglomerate has not formally announced a plan to acquire KAI. 2026-10-14 17:41:30