Galleria and Hanwha Solutions Undergo Demerger... Third-Generation Management Begins in Earnest

March 1 Split, Relisting on March 31 at Hanwha Galleria
Expansion of Kim Dong-seon’s Position in Samnam... Acceleration of Succession Process

Kim Dong-seon, Head of Strategy Division, Hanwha Solutions Galleria Division.

Galleria will be re-listed on the KOSPI next month following a spin-off from Hanwha Solutions. Industry insiders expect this split to accelerate the succession process for the third generation of the Hanwha Group. Kim Dong-sun, the third son of Chairman Kim Seung-yeon and Head of Strategy at Hanwha Solutions' Galleria division, has solidified his position within the group's distribution and leisure business sectors through Galleria's independent operation.

On the 14th, Galleria announced that the spin-off proposal for the Galleria division was approved at the Hanwha Solutions extraordinary shareholders' meeting held the previous day. The split will take place on March 1, after which the company will be named 'Hanwha Galleria.' The re-listing is scheduled for March 31. Galleria is being spun off again two years after its absorption and merger into Hanwha Solutions in April 2021. Hanwha Solutions will divide existing shares at a ratio of approximately 9 (Hanwha Solutions) to 1 (Hanwha Galleria) through the spin-off. Following the spin-off, Galleria plans to strengthen its competitiveness by expanding investments in premium retail and new businesses.

With this split, Galleria will be positioned directly under Hanwha Co., Ltd., bypassing Hanwha Solutions, thereby simplifying the corporate governance structure. Industry insiders view this as part of Kim's efforts to inherit the group's distribution and leisure businesses. Kim has been actively leading management activities this year while expanding new businesses. He is particularly focused on the food and beverage (F&B) sector, aiming to introduce 'premium food products' to the domestic market. Last month, after attending the Davos Forum (World Economic Forum), he visited the Iberico farm operated by Hanwha in Spain and announced plans to launch products using premium pork in the second half of this year. Earlier, in October last year, he personally persuaded the founder of the famous American hamburger brand 'Five Guys' to enter the Korean market. The first Five Guys store in Korea is scheduled to open in the first half of this year.

Kim plans to visit various global sites in the future to discover new growth opportunities for Hanwha's distribution and service sectors. He was promoted from Executive Director to Senior Executive Director in the Future Strategy Office at Hanwha Hotels & Resorts, laying the foundation for expanding his management role. He is also expanding his foothold in equestrian-related businesses both domestically and internationally.

Meanwhile, Hanwha Group has clarified its succession structure with Chairman Kim's eldest son, Kim Dong-kwan, Vice Chairman of Hanwha Solutions, overseeing the solar power, defense, and chemical sectors; the second son, Kim Dong-won, Vice President of Hanwha Life Insurance, managing the financial sector; and the third son, Kim Dong-sun, heading the distribution and leisure sectors.