SEOUL – South Korea's largest defence firm, Hanwha Aerospace, submitted a bid to buy the defence business of ammunition maker Poongsan in a deal that could be worth around 1.5 trillion won (S$1.3 billion), a South Korean newspaper reported on Friday (April 3).

Hanwha Aerospace submitted a proposal in a private tender process for a controlling stake in Poongsan's business that the market estimated would be worth around 1.5 trillion won with a management premium factored in, according to a report by the Korea Economic Daily, citing an unnamed investment banking source.