Hanwha Corp. and Hanwha Defense, the two defense affiliates of Hanwha Group, have signed an agreement on collaborative research and development of key defense items and technologies, officials said Wednesday in a release.

The Cooperative Research and Development Agreement -- CRADA -- was signed Dec. 10 by the US Army Combat Capabilities Development Command Armaments Center -- DEVCOM AC -- and the two Hanwha affiliates.

CRADA refers to a cooperative mechanism that enables the US government to work with academia, industry, and other nongovernmental entities on research and development. With the latest agreement, Hanwha became the first South Korean business to clinch such a deal with the US Army.

“This is a historic and exciting opportunity,” said retired US Army Lt. Gen. Bernard Champoux, head of Hanwha’s US defense operations and former commander of the Eighth US Army.

“It not only acknowledges the quality of Korea’s growing defense sector, but also further strengthens the bilateral US-Korea relationship and alliance.”

Also, the agreement demonstrated Hanwha’s commitment to US defense stakeholders and the US economy, officials said.

Hanwha Corp. specializes in modernized production of explosives propellants, while Hanwha Defense is a leading developer of combat ground vehicles and weapons systems here.

By Bae Hyun-jung (tellme@heraldcorp.com)