[Alpha Biz= Kim Jisun] SEOUL, April 9, 2026 — Poongsan Corporation has officially decided not to proceed with the sale of its ammunition business, following stalled negotiations with Hanwha Aerospace, which had been reviewing a potential acquisition.
In a regulatory filing on April 9, Poongsan stated, “While we are reviewing various measures, including business restructuring, to enhance corporate and shareholder value, there are currently no ongoing initiatives regarding the sale of our ammunition business.”
Hanwha Aerospace, which had shown interest in acquiring the unit, also announced the same day that it has halted its review of the potential acquisition. “We continue to explore various business opportunities, including Poongsan’s ammunition business, to strengthen our defense capabilities and enhance corporate value,” the company said, adding that “the review of acquiring Poongsan’s defense business has been suspended.” The announcement came just three days after Hanwha disclosed its intent to consider the deal.
Industry sources said Poongsan unilaterally notified Hanwha of its decision to withdraw from the sale without further consultation.
Poongsan had previously appointed Lazard Korea as the lead advisor for the sale and completed due diligence with Samil PwC. Hanwha Aerospace is understood to have participated in a recent confidential bidding process and submitted a proposal.
Hanwha Group had reportedly sought to create synergies by vertically integrating Poongsan’s ammunition capabilities with its core weapons systems, including the K9 self-propelled howitzer.
However, potential hurdles — including government approval, financing arrangements, and shareholder consent — were widely seen as key obstacles. In particular, if Poongsan were to pursue a spin-off of the ammunition unit prior to a sale, the plan would require a special resolution at a shareholders’ meeting, necessitating approval from at least two-thirds (66.7%) of shareholders.
Market participants are now watching whether Poongsan will pursue alternative restructuring strategies following the collapse of the deal.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
