S. Korea’s Hanwha Moves to Absorb Poongsan Ammo Division

South Korean defense contractor Hanwha Group has submitted a bid to acquire the ammunition business of Seodaemun-gu-based Poongsan Corporation.

The deal, led by Hanwha’s aerospace segment in Gyeongsangnam-do, is valued at approximately 1.5 trillion won ($998.1 million), local media reported.

Poongsan supplies a significant portion of shells for the Republic of Korea Armed Forces and exports to foreign militaries.

Hanwha plans to fold Poongsan’s capabilities into its in-house ammunition production, combining the products with existing weapons platforms to offer bundled defense packages.

Hanwha currently produces systems such as the K9 self-propelled howitzer and multiple rocket launchers, all of which rely on Poongsan ammo. 

Securing that capability would streamline domestic and overseas distribution while reducing dependence on third-party negotiations.

The acquisition requires government approval, including defense industry and antitrust reviews, with authorities likely to weigh national security implications.

Shareholder approval could be a greater challenge, as selling Poongsan’s defense unit would need a two-thirds majority vote, making minority investor support crucial.

Poongsan is reviewing options, including potential restructuring, but said “nothing has been decided,” according to Reuters.