"Spin-Off Announcement" Hanwha Shares Surge Intraday... New Holding Company Planned

Defense, Shipbuilding, Marine, Energy, and Finance to Remain with the Surviving Entity
New Hanwha Machinery & Service Holdings to Be Established
Tech and Life Businesses to Be Grouped for Spin-Off

Hanwha's stock price surged sharply during trading after the company decided to proceed with a spin-off. Hanwha resolved to establish a new company by grouping its tech and life businesses and to carry out a spin-off accordingly.

As of 1:50 p.m. on January 14, Hanwha was trading at 128,800 won, up 25.66% compared to the previous session. At one point during the day, it climbed as high as 130,700 won, maintaining its strong momentum.

In 2022, Seungyeon Kim, Chairman of Hanwha Group, along with executives, attended the 100th anniversary commemorative event of Hyeonam Kim Jonghee, the founder of Hanwha Group, held at the 63 Building in Yeouido, Seoul. From left to right: Dongwon Kim, Vice President of Hanwha Life Insurance; Seungyeon Kim, Chairman; Dongseon Kim, Executive Director of Hanwha Solutions Galleria. Photo by Hyunmin Kim

On this day, Hanwha announced after a board meeting that it would spin off into a surviving entity, which will retain the defense, shipbuilding, marine, energy, and financial divisions, and a new company that will combine the tech and life businesses. The related procedures are expected to be completed in July, following an extraordinary shareholders' meeting scheduled for June.

After the spin-off, the tech and life affiliates will be organized under the new company, Hanwha Machinery & Service Holdings. Specifically, the tech affiliates will include Hanwha Vision, Hanwha Momentum, Hanwha Semitec, and Hanwha Robotics, while the life affiliates will include Hanwha Galleria, Hanwha Hotels & Resorts, and Ourhome.

The surviving entity will retain defense, shipbuilding, marine, energy, and financial affiliates such as Hanwha Aerospace, Hanwha Ocean, Hanwha Solutions, and Hanwha Life Insurance.

A Hanwha representative explained, "This decision was made to establish management strategies tailored to the characteristics of each business group and the market environment, and to build a system that enables swift decision-making, thereby enhancing corporate and shareholder value." The company aims to strengthen the independence and responsible management of each business through the spin-off.