[Market Focus] Hanwha Galleria Surges 28% on News of Owner Family's Stake Sale

On December 18, Hanwha Galleria is experiencing a sharp surge. The stock's rapid rise is attributed to expectations that the large-scale stake sale by the Hanwha Group owner family will secure cash and expand the company's investment capacity.

As of 9:35 a.m. on this day, Hanwha Galleria is trading at 1,858 won, up 415 won (28.76%) from the previous trading day. This marks a new 52-week high.

Hanwha Galleria has been soaring for two consecutive days. The previous day, the stock hit the upper price limit as soon as the market opened and closed at 1,443 won, up 30% from the opening price.

This surge is believed to be driven by strong buying following news that Kim Dongwon, President of Hanwha Life and the second son of Hanwha Group Chairman Kim Seungyeon, and Kim Dongseon, Executive Vice President of Hanwha Galleria and the third son, have decided to sell their stakes in Hanwha Energy, which sits at the top of the group's governance structure.

President Kim Dongwon and Executive Vice President Kim Dongseon have decided to sell 5% and 15% stakes in Hanwha Energy, respectively, totaling 1.1 trillion won. The shares will be sold to a consortium comprising financial investors such as Korea Investment Private Equity, Korea Investment & Securities, and Daishin Securities.

Hanwha Energy is a key affiliate at the core of Hanwha's governance structure. With this stake reorganization, Vice Chairman Kim Dongkwan, the eldest son, will secure a 50% stake-greater than the combined shares of his younger brothers-solidifying the group's succession structure.

President Kim and Executive Vice President Kim plan to use the proceeds from the stake sale to pay gift taxes, and the remaining funds will be used to expand new businesses within their respective affiliates. Executive Vice President Kim, having previously acquired Ourhome, the group catering division of Shinsegae Food, and Paraspara Seoul, is drawing market attention for potential additional mergers and acquisitions (M&A).