The domestic defense industry is intensifying its efforts to secure talent in the aerospace sector, a key area for future growth. Hanwha, the largest defense company, is actively recruiting even in the backyard of its competitor, Korea Aerospace Industries (KAI), located in Sacheon, South Gyeongsang Province, where it is considering acquiring management rights.
According to industry sources, large-scale recruitment ads for experienced workers from Hanwha Systems have recently appeared near KAI's headquarters in Sacheon and at Sacheon Airport. The company is taking proactive steps to attract talent by placing ads on city buses used by KAI employees, as well as at the airport, a major gateway connecting Seoul and Sacheon.
As of the previous day, Hanwha Systems was recruiting experienced professionals for ten positions, including satellite system development and satellite payload development. There have been consistent reports of employees leaving KAI for Hanwha's defense subsidiaries, with over 60 individuals making the switch since 2023. Estimates suggest that the total number of departures, including unconfirmed cases, could be around 100. The frequent hiring of experienced professionals in the aerospace sector has led to increased employee mobility.
Last month, Hanwha Aerospace conducted recruitment for experienced personnel in its drone business, requiring at least five years of experience in developing flight control systems for aircraft or drones for certain positions. Reports indicate that three KAI employees have switched to Hanwha this month alone.
KIM Seung-gu, chairman of the KAI labor union, stated, "Even if there is a talent shortage, it is crossing a line to come down to the Sacheon headquarters to recruit. It is also disrespectful to KAI employees who are quietly dedicated to their work out of a sense of mission in aerospace."
In addition to recruiting talent, Hanwha has been steadily increasing its stake in KAI. Hanwha Aerospace, Hanwha Systems, and Hanwha Aerospace USA collectively hold a 15.89% stake in KAI, making them the second-largest shareholder after the Korea Export-Import Bank.
The defense industry is focusing on securing aerospace talent due to the significant growth potential in this sector, coupled with a shortage of immediately deployable skilled workers. The development of aircraft, drones, and satellites requires extensive experience and expertise, from system integration to design, production, and testing. Companies traditionally focused on ground weapons are now identifying aerospace as a future growth driver, making talent acquisition a critical issue.
With Hanwha and Hyundai Motor Group planning large-scale investments in the Yeongnam region, the competition for aerospace talent is expected to intensify. In July, President Lee Jae-myung presided over the 'Yeongnam Region Advanced Industry Development Vision National Report Meeting' in Jinju, Gyeongnam, where Hanwha announced plans to invest 55 trillion won in aerospace and artificial intelligence (AI) by 2040. Hyundai Motor Group also revealed plans to invest 42 trillion won over the next decade in AI-based autonomous mobility, key future components, manufacturing AI, and future aviation and space technologies.
If these large-scale investments lead to actual business expansion, the demand for related research, development, and production personnel is likely to increase as well.
In fact, Hyundai Motor Group has begun recruiting master's and doctoral level experienced professionals for future aviation mobility development this year. Hyundai Rotem, known for its tanks, has also recently initiated separate hiring in the aerospace sector, intensifying the competition for talent within the industry.
LEE Jun-gon, an adjunct professor at Konkuk University’s Defense Acquisition Department, noted, "As companies expand their investments in preparation for the growth of the aerospace industry, the competition for talent acquisition is becoming increasingly fierce. With the Aerospace Agency and KAI concentrated in Sacheon, it is bound to be a major source of talent for companies."
* This article has been translated by AI.
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