Hanwha Hotels & Resorts Splits Equestrian Business and Securitizes 103.5 Billion KRW in Assets for "Selection and Focus" (Comprehensive)

Equestrian Business Division Spun Off to Establish "Independent Professional Management System"
Transferred to Hanwha Solutions Including Jade Palace Golf Course, Jade Garden Arboretum, and Jirisan Hanwha Resort
Full-Scale New Business Investment Including Seorak Complex Development

[Asia Economy Reporter Yuri Kim] Hanwha Hotels & Resorts is spinning off its equestrian business division and transferring assets worth 103.5 billion KRW to Hanwha Solutions, embarking on a strategy of 'selection and concentration.'

On the 17th, Hanwha Hotels & Resorts announced that it will spin off its equestrian business division (Premium Leisure Business Division) to establish Hanwha Next (tentative name). The corporation establishment date is May 1. The spun-off equestrian business division is overseen by Kim Dong-seon, Executive Director and third son of Hanwha Group Chairman Kim Seung-yeon, who serves as Head of Future Strategy Office, managing the equestrian business and new ventures.

Jung Tae-hee was appointed as the CEO of the spun-off company. CEO Jung is a Hanwha Group public recruitment alumnus and has experience handling overseas sales in the U.S. and Europe. The company explained that based on this background, they judged him to be the right person to apply advanced overseas equestrian industry practices domestically.

The company plans to separate the equestrian business into an independent corporation, similar to the establishment of Aqua Planet and The Tastable corporations in April and July last year. The company stated, "The establishment of the corporation through this spin-off is to separate the equestrian business, which has low relevance to existing businesses, and build an independent professional management system in line with Hanwha Hotels & Resorts' 'selection and concentration' business strategy. Through this, we aim for all businesses to develop into companies capable of sustainable growth." They added, "By allowing the business to focus independently, we will secure expertise and competitiveness for sustainable growth and improve management efficiency through flexible responses to current issues."

Alongside this, Hanwha Hotels & Resorts is securitizing assets worth a total of 103.5 billion KRW to accelerate new businesses such as the Seorak complex development targeted for 2024. On this day, Hanwha Hotels & Resorts announced the transfer of the Chuncheon Business Headquarters golf course (Jade Palace Golf Course) and Jade Garden Arboretum operation business to Hanwha Solutions for 61.485 billion KRW. The Jirisan Hanwha Resort, which ceased operations in March and was seeking new business opportunities, was also transferred to Hanwha Solutions for 10.424 billion KRW.

Shares of three overseas affiliates, including Japan GK Summit Apollo Eleven, were also transferred to Hanwha Solutions for 31.634 billion KRW. These shares relate to the Japan Mattie Niseko Resort development project. Hanwha Hotels & Resorts explained, "We secured funding for priority new investments such as the Seorak complex development and focused on 'selection and concentration' of businesses. Through this transfer, financial structure improvement will also be achieved by securing cash liquidity."