Hanwha Group headquarters in central Seoul. (Hanwha Group) Hanwha Group affiliates have raised the group's stake in Korea Aerospace Industries to 9.04 percent, becoming the second-largest shareholder after the state-run Export-Import Bank of Korea and further solidifying Hanwha’s ambitions in the aerospace and defense sectors.Hanwha Aerospace, the group’s key defense unit, said Tuesday it acquired 3.02 million shares of KAI for 499.9 billion won ($332 million), bringing its total holdings to 6.33 million shares, or a 6.5 percent stake.Another affiliate, Hanwha Systems, separately invested 125 billion won to raise its stake to 1.53 percent. When combined with a 1.01 percent stake held by Hanwha Aerospace USA, the group’s total ownership in KAI now stands at 9.04 percent.The Export-Import Bank of Korea remains KAI’s largest shareholder with a 26.41 percent stake.Hanwha Aerospace’s board also approved an additional 500 billion won investment that day, intended to raise its KAI stake to 9.97 percent by the end of the year. If completed as planned, the group’s combined ownership in KAI is expected to exceed 12 percent.Hanwha changed the purpose of its KAI stake from “simple investment” to “management participation” in May after its stake exceeded 5 percent, signaling the group's intention to play a more active role in KAI's strategic decision-making.Hanwha said the latest increase is aimed at strengthening the competitiveness of South Korea's aerospace and space industries.The group already operates businesses covering aircraft engines, avionics, radar systems, satellites, launch vehicles and ground-based defense systems. KAI, South Korea’s sole manufacturer of complete aircraft, develops and produces fighter jets, trainer aircraft satellites and airborne combat systems.Hanwha expects that combining the two companies' capabilities and technologies can eliminate inefficiency and strengthen the competitiveness of the country’s aerospace and aviation industry.“The combination of Hanwha and KAI would enable the creation of the largest domestic space industry value chain, connecting everything from launch vehicles to satellites, ground systems, and space services,” Hanwha said in a statement. “This could translate into a significant enhancement of the nation's overall space industry capabilities.”