Hanwha Spin-Off Approved by Shareholders... Dong-Kwan Kim to Lead with Focus on Defense and Shipbuilding

New Entity to Focus on Machinery and Distribution


Third-Generation Management Structure Becomes Clearer

With Hanwha’s spin-off plan receiving shareholder approval, the third-generation management structure of Hanwha Group is expected to become more defined. Through this spin-off, Vice Chairman Dong-Kwan Kim, the eldest son in charge of defense, shipbuilding, and energy at Hanwha Group, and President Dongwon Kim of Hanwha Life Insurance, the second son, will remain with the surviving entity. Meanwhile, Executive Vice President Dongseon Kim, the third son and Head of Future Vision for Hanwha Hotels & Resorts and Hanwha Galleria, will lead the newly established entity, overseeing technology and lifestyle businesses such as machinery, semiconductors, equipment distribution, and more.

Kim Dong-Kwan, Vice Chairman, is presenting Hanwha's marine decarbonization vision at the session "World's First Fossil Fuel-Free Ship" during the 2024 Davos Forum Annual Meeting. Photo by The Asia Business Daily

On the 15th, Hanwha Corporation announced that the spin-off plan was approved at an extraordinary shareholder meeting with a 99.95 percent approval rate. This decision concludes a procedure that has continued for about six months since the board resolution in January. The spin-off date is set for August 1, with the relisting of the surviving entity and new entity scheduled for August 25.

As a result of the spin-off, defense, shipbuilding and marine, energy, and financial affiliates—including Hanwha Aerospace, Hanwha Ocean, Hanwha Solutions, and Hanwha Life Insurance—will remain with the surviving entity. Technology affiliates such as Hanwha Vision, Hanwha Momentum, and Hanwha Semitek, as well as lifestyle affiliates like Hanwha Galleria, Hanwha Hotels & Resorts, and Ourhome, will be incorporated into the new entity. The split ratio, based on the net asset book value, is 0.7563533 for the surviving entity and 0.2436467 for the new entity. Existing shareholders will receive shares in both entities according to this division ratio.

Dongseon Kim, Executive Vice President of Future Vision, is explaining the significance and blueprint of the Ourhome acquisition. The Asia Business Daily DB

This spin-off is expected to accelerate the process of separating business groups among the third generation of Hanwha Group. There is analysis that Vice Chairman Dong-Kwan Kim’s control over Hanwha Corporation will be strengthened, making the succession structure of the group clearer. At the same time, the role of Executive Vice President Dongseon Kim has also been clarified. He plans to invest a total of 4.7 trillion won by 2030, allocating 2.1 trillion won to facility investments, 2 trillion won to research and development (R&D), and 600 billion won to mergers and acquisitions (M&A).

Wooseok Kim, CEO of Hanwha Corporation, stated at the shareholder meeting, “After the spin-off, the surviving entity will focus on strengthening sustainable growth in core businesses such as defense, shipbuilding and marine, energy, and finance, while the new entity will establish an independent management system centered on security and semiconductor equipment as well as distribution, to enhance business expertise and competitiveness. By creating a foundation for a clearer assessment of each business’s value and growth potential, we will contribute to the long-term increase of corporate value and shareholder value.”

This content was produced with the assistance of AI translation services.