Korea Eximbank head says no current plan to sell stake in KAI
In short
Hwang Gi-yeon (황기연), head of the Export-Import Bank of Korea, said on 20 October at a National Assembly audit that the bank has no current plan to sell its stake in Korea Aerospace Industries (KAI). He said a recent consulting study was not commissioned on the premise of privatisation or a sale, but said it is hard to speak definitively about future plans.
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Hwang Gi-yeon (황기연), head of the Export-Import Bank of Korea, said on 20 October that the bank has no current plan to sell its stake in Korea Aerospace Industries (KAI). He spoke at an audit of the bank held by the National Assembly's Strategy and Finance Committee. [ 1 , 2 , 3 , 4 ]
Democratic Party lawmaker Yoon Hu-deok (윤후덕) asked him about the bank's recent space and aerospace consulting study. Hwang replied that the study was not conducted on the premise of privatisation or a sale and that there is currently no plan to sell KAI. According to Maeil Business, Yoon voiced concern about whether the consulting was being done to steer business to a particular company. [ 1 , 2 , 3 , 4 ]
Hwang said the study was meant to analyse the situation at home and abroad and to hear a range of views on what role a policy financial institution should play in the space and aerospace sector. Maeil Business reported that People Power Party lawmaker Kang Min-guk (강민국) asked why the bank, rather than the government, was doing such consulting. Hwang answered that some of the bank's client companies are in the space industry and that it wanted views on what policy finance can do for the industry's development. [ 1 , 2 , 3 , 4 ]
Hwang added that it is hard to speak definitively about future plans. Maeil Business quoted him as saying there is no sale plan now but that it is hard to say definitively what will be done in future. [ 1 , 2 , 3 , 4 ]
The bank ordered the 1.8 billion won study in August, Yonhap and Chosun Ilbo said. Chosun Ilbo and Newsis said it included ways to nurture a global space and aerospace anchor company. The bank holds 26.41% of KAI and is the largest shareholder, and Hanwha Group holds 15.89%. Yonhap said Hanwha reached that level in August, while Maeil Business said Hanwha held about 5% until May and raised the stake to 15.89% in September. [ 1 , 2 , 3 , 4 ]
Newsis reported that some had raised concern about privatisation of KAI or a transfer of control to a specific conglomerate, and that Yoon cited a joint statement by KAI-related unions opposing such a transfer. Maeil Business said lawmakers from both the ruling and opposition sides argued that arms-industry work should not be concentrated in one company at the audit. [ 2 , 4 ]
Why it matters
The remarks respond to a privatisation debate that followed Hanwha Group's larger KAI stake. The documents show no decision on KAI's ownership, and the bank head left the future open.
Key facts
- Hwang Gi-yeon, head of the Export-Import Bank of Korea, said on 20 October that the bank has no current plan to sell its KAI stake. [ 1 , 2 , 3 , 4 ]
- He said the bank did not order its space and aerospace consulting study on the premise of privatisation or a sale. [ 1 , 2 , 3 , 4 ]
- The bank holds 26.41% of KAI and is its largest shareholder; Hanwha Group holds 15.89%. [ 1 , 2 , 3 , 4 ]
- The consulting study on strengthening space and aerospace industry competitiveness is worth 1.8 billion won. [ 1 , 2 , 3 , 4 ]
- Hwang said it is hard to speak definitively about future plans. [ 1 , 2 , 3 , 4 ]
- Democratic Party lawmaker Yoon Hu-deok (윤후덕) put the question about the study to Hwang. [ 1 , 2 , 3 , 4 ]
- People Power Party lawmaker Kang Min-guk (강민국) asked why the bank, rather than the government, was doing the consulting. [ 4 ]
Confirmed by several sources
- Hwang said at the National Assembly audit on 20 October that the bank has no current plan to sell KAI. [ 1 , 2 , 3 , 4 ]
- Hwang said the consulting study was not conducted on the premise of privatisation or a sale. [ 1 , 2 , 3 , 4 ]
- Hwang said he could not speak definitively about future plans. [ 1 , 2 , 3 , 4 ]
- The Export-Import Bank of Korea holds 26.41% of KAI and Hanwha Group holds 15.89%. [ 1 , 2 , 3 , 4 ]
Still unclear
- Whether KAI will be sold or privatised in future Hwang said there is no current plan but that it is hard to speak definitively about future plans.
- When Hanwha reached its 15.89% stake Yonhap says it did so in August; Maeil Business says it was about 5% until May and rose to 15.89% in September.
- Whether the consulting study was linked to a possible sale or change in KAI's governance Critics raised the question, according to the documents, while Hwang said the study was meant to gather views on the role of policy finance in the space and aerospace sector.