Department Store Upgrading, Group Complex Development Participation, New Business Expansion
Post-Division Listing and Succession Foreseen, Samnam's Kim Dongseon on the Test Bench
Hanwha Galleria, stepping out independently and preparing for its stock market debut, is set to strengthen its business this year with three key strategies. By segmenting luxury MDs and solidifying its image as a premium department store, it aims to enhance its core business competitiveness. At the same time, it plans to actively participate in complex development projects involving Hanwha Group to create new opportunities. One of the major new businesses is led by Kim Dong-seon, the third son of Hanwha Group Chairman Kim Seung-yeon and head of Hanwha Galleria’s Strategy Headquarters. Industry experts predict that this year’s performance of Hanwha Galleria will also serve as an evaluation of Kim’s succession prospects within the group’s distribution, hotel, and resort businesses.
According to industry sources on the 30th, Hanwha Galleria, newly established after a spin-off from Hanwha Solutions and starting independent management this month, will go public on the 31st. Based on the split date, Hanwha Solutions shareholders will receive shares of the continuing Hanwha Solutions and Hanwha Galleria at approximately a 9 to 1 ratio. Shares less than one unit will be compensated in cash based on the closing price on the first day of the new listing. Hanwha Galleria was once a 100% subsidiary of Hanwha Solutions, merged into Hanwha Solutions in 2021, and now has undergone a spin-off again after two years. With its independent listing, Hanwha Galleria has secured a foundation for autonomous management and plans to focus this year on strengthening its core business competitiveness, expanding group synergies, and acquiring new premium content (new businesses).
The core department store business will reinforce its “premiumization strategy” centered on luxury and other premium brands. Although it operates only six stores, fewer than its competitors, the strategy is to strengthen MD by segmenting luxury categories to establish itself as the number one premium department store in each region rather than pursuing aggressive expansion. For example, Galleria Luxury Hall will expand the entry of luxury brands such as Chanel into its shoe zone in the first half of this year. Last year, the luxury hall renewed its shoe zone, gathering brands like Dior shoes, Manolo Blahnik, Christian Louboutin, and Jimmy Choo. Timeworld opened “Luxury Men,” a luxury men’s specialty store on one floor this month, completing a luxury lineup that includes the basement first-floor men’s luxury hall, first-floor luxury boutiques and high jewelry, and second-floor women’s luxury hall. Gwanggyo also strengthened luxury men’s and watch brands and expanded premium home appliance stores.
Hanwha Group also plans to actively participate in complex development projects it leads. These projects link facilities for culture, leisure, business, commerce, and accommodation, and Hanwha Galleria plans to develop and operate premium commercial complexes by leveraging brand sourcing capabilities and VIP strategies. To this end, Hanwha Galleria’s business objectives now include real estate development, sales, purchase, leasing, operation, and management. Currently, Hanwha is undertaking various complex development projects, including the northern area of Seoul Station with a project cost of 2 trillion won.
Hanwha Galleria is also making a full-scale entry into new businesses. The famous American hamburger brand Five Guys, which Kim Dong-seon led the effort to attract, will open its first domestic store in late June in the heart of Gangnam-daero, Gangnam-gu, Seoul. Since Kim took the lead from brand review to contract signing, he is preparing the first store opening with great affection. He has also actively promoted the brand by posting related content continuously on social media (SNS). The eco-friendly purebred Iberico business is another new business led by Kim. Premium Iberico pork produced at Hanwha’s directly managed farm in Spain will be commercialized and introduced to the domestic market in the second half of this year. Starting with Chuseok gift sets, various products will be launched. Additional new businesses outside of distribution will also expand this year. It is known that business reviews are underway domestically and internationally centered on Kim Dong-seon.
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