Hyundai Rotem will acquire the defence business of affiliate Hyundai Wia for ₩358.4bn (about US$252m), according to a regulatory filing on 19 October.
Why Hyundai Rotem is buying Hyundai Wia special (defence) business division
Hyundai Rotem said the purchase would consolidate the group's defence capabilities, strengthen competitiveness in future weapons systems and vertically integrate production, citing business diversification and new growth drivers. The division makes large-calibre guns, including K9 self-propelled howitzer barrels and the K2 tank's main gun.
Deal terms and financing
The price is the division's ₩480bn business value less ₩117bn of land and buildings, which are not included and will instead be leased. It may be adjusted for changes in net assets between the 31 December 2025 valuation date and closing.
Regulatory approvals and timing
The transfer is scheduled for 31 March 2027 but may change depending on closing conditions and approvals from the relevant authorities.
Market context
For Hyundai Wia, the sale is part of a refocus on future mobility, with proceeds earmarked for constant velocity joints, thermal management systems and robotics, according to The Korea Times.
