[Alpha Biz= Ellie Kim] Shin Ik-hyun, head of LIG Defense & Aerospace, has denied reports that the company formed an internal task force to pursue the acquisition of Korea Aerospace Industries (KAI), according to an exclusive report by Digital Daily.

Speaking after attending a defense seminar at the National Assembly on the 29th, Shin said, “We have not established such a task force,” rejecting media speculation.

Despite the denial, the market continues to view LIG D&A as a potential bidder, citing its strengths in precision electronics and its strategic expansion into aerospace. A potential combination with KAI is seen as a way to enhance export competitiveness.

Hanwha Group is also widely considered a leading candidate. With affiliates such as Hanwha Aerospace, Hanwha Ocean, and Hanwha Systems, an acquisition of KAI could enable Hanwha to build a fully integrated defense platform.

The overlap has raised expectations of a potential rivalry between LIG D&A and Hanwha, particularly as both are involved in the KF-21 fighter jet program alongside KAI. Competition could intensify over future projects, including long-range guided weapons for the platform.

Hanwha recently increased its stake in KAI to 4.99%, further fueling acquisition speculation. Meanwhile, Shin emphasized LIG D&A’s organic growth model and long-term partnerships, in contrast to aggressive M&A strategies seen elsewhere in the industry.

 

 

 

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