Hanwha Group, South Korea’s chemical-to-financial conglomerate, is set to invest 37.6 trillion won ($29.8 billion) in future growth sectors such as aerospace, renewable energies and carbon neutrality by 2026.
The country’s seventh-largest chaebol said on Tuesday it aims to secure future technology and markets while fostering the competitiveness of the existing businesses through the spending amid growing uncertainties over the external business environment.
Hanwha decided to pour 20 trillion won into South Korea among the total, slightly lower than the combined investment of 22.6 trillion won at home and abroad in the last five years, while spending the remainder in other countries.
That came as Samsung Group, Hyundai Motor Group and other local conglomerates unveiled massive investment plans after the country’s new President Yoon Suk-yeol took office earlier this month.
“Hanwha Group aims to support private sector-led economic growth by further strengthening core technology competitiveness and products,” the chaebol said in a statement, adding it plans to create about 20,000 new jobs in the country over the next five years.
RENEWABLE ENERGY
The group will focus on the energy, carbon neutrality, defense and aerospace industries for the local investment.
Hanwha will spend 4.2 trillion won on renewable energy areas such as solar and wind power sectors.
It aims to foster the country as a manufacturing base for high-efficiency solar power-related products by strengthening research and development of the sector, as well as establishing advanced production facilities. It also decided to expand the renewable energy development business that combines solar and wind power.
The group’s heir apparent Kim Dong-kwan, the chief executive of Hanwha Solutions Corp., the energy unit of the group, has been working hard on the renewable energy businesses.
Hanwha Group allocated 2.1 trillion won to develop new eco-friendly materials to achieve carbon neutrality. It will invest 900 billion won to build production facilities for green hydrogen and commercialize mixed hydrogen combustion technologies.
In addition, the group plans to secure new technologies in the satellite and urban air mobility sector, as well as expand its aerospace business portfolio.
For the overseas investment, the group aims to focus on new growth engines such as renewable energy, carbon neutrality and aerospace sectors. It will buy stakes in startups with related technologies for equity investment and acquisitions.
Write to Jeong Min Nam at peux@hankyung.com Jongwoo Cheon edited this article.
