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K2 battle tank during live-fire testing. (Photo = Hyundai Rotem) |
[Alpha Biz= Kim Jisun] Hyundai Wia is reviewing a plan to sell its defense business to affiliate Hyundai Rotem as part of a broader portfolio restructuring.
According to industry sources on April 15, Hyundai Wia is considering transferring its defense division to Hyundai Rotem, with the goal of completing the deal within the year.
The move is seen as part of ongoing business realignment within the Hyundai Motor Group. Following the divestment and spin-off of its machine tools business in July last year, Hyundai Wia is now exploring further restructuring to focus on core areas such as thermal management systems and robotics.
Hyundai Wia’s defense unit has been a longstanding business since the company’s founding in 1976, producing key components such as large-caliber gun barrels for the K9 self-propelled howitzer and the main guns for the K2 battle tank. Defense-related revenue has grown significantly, rising from KRW 185.7 billion in 2022 to around KRW 400 billion last year.
If the transaction proceeds, Hyundai Rotem is expected to strengthen its defense capabilities by integrating Hyundai Wia’s core technologies in large-caliber artillery systems.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
