KAI acquires satellite communications specialist Genohco

(KAI)

Korea Aerospace Industries Ltd. (KAI) announced on Thursday that it has acquired Genohco Inc., a specialist in avionics and satellite communications.

Genohco develops and manufactures satellite communication payloads and components for the aerospace and defense industries.

It was named one of the top 100 innovative defense companies by the Defense Acquisition Program Administration in 2020.

KAI confirmed that it acquired shares from Genohco‘s largest and second-largest shareholders and issued new shares through a third-party allocation, ultimately securing a 37.95 percent stake.

The acquisition, valued at 54.5 billion won ($39.35 million) for 3.34 million shares, ensures that Genohco’s Chief Executive Officer Yoo Tae-sam will remain involved in management.

KAI expects the acquisition to help localize avionics components, improving price competitiveness. Additionally, Genohco’s expertise in small satellite technology is expected to strengthen KAI‘s space business portfolio, according to the company.

Since 2012, when the companies began a joint project to localize interference blanker units for the FA-50 fighter, Genohco has developed avionics components for KAI’s KF-21, light armed helicopter (LAH), and unmanned aerial vehicle (UAV) programs.

KAI CEO Kang Goo-young noted that Genohco will become a key subsidiary in satellite and avionics technology, enhancing KAI’s competitive edge in aircraft and satellite exports.