Hanwha Systems to Invest 1.2 Tril. Won in Aerospace and Air Taxis

A mock-up of Hanwha Systems’ vertical take-off and landing (VTOL) type aircraft Butterfly

Hanwha Systems announced on March 29 that it has decided to increase capital by 1.2 trillion won.

Hanwha Systems plans to issue 78,689,000 new ordinary shares. The planned issue price is 15,250 won per share. The standard date for the allocation of new shares is April 22 and the scheduled subscription date for old shares is June 3 to 4. This paid-in capital increase will be carried out through a public offering of forfeited shares after the allocation of the new shares to shareholders.

Hanwha Systems will invest 500 billion won in low earth orbit (LEO) satellite communication and 450 billion won in urban air mobility (UAM) for three years starting from 2021. The plan is to establish an LEO satellite communication system and develop UAM aircraft, infrastructure, control, services and air logistics services.

Hanwha Systems announced that it has been developing the UAM aircraft Butterfly with Overair of the United States since 2019. It plans to test an electric propulsion system, which is the core of the aircraft, in the United States during the first half of 2021.

Hanwha Systems plans to finish aircraft development by 2024, and start pilot air mobility services by 2025. The company expects its air mobility business to log 11.4 trillion won in sales in 2030.

“Hanwha Systems plans to invest 250 billion won in companies with core technologies,” a company official said. “We will invest 200 billion won in developing UAM aircraft, infrastructure and services.”

Besides, it will also invest 250 billion won in the blockchain-based digital platform business. Its goal is achieving 23 trillion won in sales by 2030 including new businesses that it will invest in.