Hanwha Systems (CEO Sung-chul Eo) recorded good performance last year due to growth in defense exports and large-scale mass production business, as well as the next-generation ERP integrated solution and external financial solution construction business in the ICT sector.

Hanwha Systems announced its 2023 business performance on the 23rd. According to this, sales increased 12.1% year-on-year to KRW 2.4531 trillion, and operating profit increased 137.6% year-on-year to KRW 92.9 billion. Net income turned to a surplus of 343.1 billion won.

This performance improvement was analyzed to be due to good performance in export and large-scale mass production projects in the defense industry, as well as in the next-generation ERP integrated solution and external financial solution construction projects in the ICT sector.

Last year, in the defense sector, △the export contract for the UAE Cheongung-II multi-function radar, which opened the door to K-defense exports in January 2022, was realized as sales, △the 4th mass production of the military's next-generation communication system, the Tactical Information and Communications Network (TICN), and △the mass production project for ground terminals for the military satellite communication system-II were also used to drive sales.

In the ICT sector, sales were generated by expanding external businesses such as the establishment of the next-generation ERP (management system) for Hanwha Aerospace through the integration of Hanwha Defense affiliates and the establishment of the next-generation system for Shinhan EZ Insurance based on financial solutions.

This year, in 2024, Hanwha Systems plans to solidify its performance in the defense sector through major development, mass production, and maintenance projects such as ▲ performance improvement of the 4,200-ton class Korean destroyer (KDX)-II combat management system (CMS), ▲ first mass production of the Korean fighter jet (KF-21) AESA radar, ▲ anti-aircraft guided weapon system 'Cheonma' and tactical communications network (TICN) maintenance project (PBL), and continue to achieve results in defense exports centered on the Middle East, Europe, and Southeast Asia.

The ICT sector plans to continuously discover new businesses, such as ▲ entering overseas markets by developing and enhancing solutions optimized for customer business ▲ expanding business areas to include small and medium-sized life and non-life insurance companies by strengthening the financial solution lineup.

Last December, Hanwha Systems successfully launched and communicated with Korea's first civilian observation satellite, the 'small SAR satellite', and is currently collecting image information through the small SAR satellite. In the future, we plan to expand our business area to include the satellite image service market through verified data.

Sung-chul Oh, CEO of Hanwha Systems, said, “This year, Hanwha Systems will continue to create new business opportunities through a balanced portfolio across defense, ICT, and new businesses,” adding, “We will further increase corporate value by focusing on internalizing and localizing original technologies and strengthening our export capabilities and core growth engines that can lead the future.”

Meanwhile, the business performance for the fourth quarter of 2023 was also announced. Sales decreased by 0.8% year-on-year to KRW 782.1 billion, but operating profit turned to a surplus year-on-year to KRW 11 billion. Net income also turned to a surplus year-on-year to KRW 42.2 billion.