South Korea’s Hanwha seeks U.S. defense market entry with K9 howitzer and warships.

On June 11, 2025, Hanwha Group is accelerating its strategic ambitions to capture segments of the U.S. defense market, focusing on land-based artillery through its K9 self-propelled howitzer and maritime capabilities via shipyard investments, as reported by ChosunBiz EN. This dual-front strategy positions Hanwha as a rising global competitor seeking relevance in the world’s most competitive defense ecosystem. By pairing tested platforms with localized production, Hanwha signals a long-term commitment to U.S. defense integration.
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Hanwha’s expanding footprint across U.S. land and naval defense sectors represents more than a commercial move, it is a calculated shift designed to redefine the company’s global position. With proven systems like the K9, capital-intensive infrastructure, and transpacific alignment strategies, Hanwha is not merely entering the U.S. market, it is embedding itself within it (Picture source: Hanwha)

The K9 self-propelled howitzer, currently fielded in ten countries including South Korea, is Hanwha Aerospace’s flagship contender for the U.S. Army's self-propelled howitzer modernization (SPH-M) project. Presented in its K9A2 configuration, the system offers advanced automation, improved rate of fire, and a proven operational track record across NATO and Asia-Pacific theaters. Unlike the U.S.-developed M1299, which faced setbacks in barrel durability under the ERCA program, the K9 emphasizes sustained performance and deliverability, backed by its extensive global service history and modular upgrade path.

Parallel to its artillery bid, Hanwha Ocean and Hanwha Systems have significantly expanded their naval production footprint through the acquisition of the Philadelphia shipyard for $100 million. This strategic base supports Hanwha’s entry into U.S. shipbuilding, aligned with the former Trump Administration’s Strategic Commercial Fleet plan. The site aims to scale from current production of just over one vessel per year to ten annually, targeting both commercial and military segments. This growth is to be further reinforced through ongoing efforts to secure a management stake in Austal, a key U.S.-based shipbuilder with facilities in Alabama and California. Together, these moves are designed to provide the infrastructure and partnerships needed for future warship contracts.

Developed in the late 1990s by South Korea's Agency for Defense Development and Samsung Techwin (now Hanwha Aerospace), the K9 Thunder represents a mature and robust platform that has evolved through two major upgrades. Its 155mm/52-caliber gun system offers compatibility with NATO-standard munitions and delivers fire support at ranges up to 40 km with base bleed shells. The current K9A2 variant adds automated loading systems, enhanced fire control, and networking for integration in modern joint operations. By comparison, U.S. systems like the M109A7 lack the same level of automation and export-proven versatility, while Germany’s PzH 2000, although technically advanced, is heavier and costlier, which may complicate U.S. logistical integration.

Strategically, Hanwha’s push into the U.S. market responds to both the Army’s pivot toward off-the-shelf solutions and broader geopolitical recalibrations. By embedding its industrial base locally, Hanwha leverages not just defense diplomacy but also industrial policy, aligning with American calls for trusted, diversified supply chains. With the U.S. Army expected to make a decision on its SPH-M selection by the end of the decade, Hanwha’s approach combines technological readiness with logistical assurance, potentially giving it an edge over traditional Western defense primes. Its participation in AUKUS-aligned efforts and interest in Austal also point to ambitions beyond U.S. borders, targeting multilateral maritime programs.

From a financial standpoint, Hanwha Aerospace has allocated approximately 1.3 trillion won, nearly $1 billion, for its U.S. expansion, with major investments earmarked for a new 155mm propellant charge production facility. Meanwhile, the Philadelphia shipyard and Austal share acquisition reinforce the long-term capital strategy underpinning Hanwha’s U.S. entry. While no U.S. contract has been awarded yet for the K9, its inclusion in the SPH-M competition marks a critical milestone. The last major deal involving the K9 was its selection by Poland, which procured hundreds of units in a multibillion-dollar agreement, an indication of the platform’s strategic and financial relevance.

Hanwha’s expanding footprint across U.S. land and naval defense sectors represents more than a commercial move, it is a calculated shift designed to redefine the company’s global position. With proven systems like the K9, capital-intensive infrastructure, and transpacific alignment strategies, Hanwha is not merely entering the U.S. market, it is embedding itself within it. This multi-domain approach may set the precedent for future non-Western defense firms seeking to compete on America’s home turf.