Hanwha Group, one of South Korea’s most influential conglomerates, has announced a sweeping plan to restructure its business, marking a pivotal moment in the company’s long history. On the morning of January 14, 2026, Hanwha’s board of directors convened and resolved to proceed with a major spin-off, dividing the company into two distinct entities. This bold move is set to reshape the group’s business landscape and clarify the roles of Chairman Kim Seung-yeon’s three sons within the organization.
According to Yonhap Infomax and other leading financial outlets, the split will see Hanwha’s defense, shipbuilding, energy, and finance arms remain in the existing holding company, while the tech and lifestyle divisions—including Hanwha Vision, Hanwha Momentum, Hanwha Semitec, Hanwha Robotics, Hanwha Galleria, Hanwha Hotels & Resorts, and Ourhome—will form a new entity tentatively named Hanwha Machinery & Service Holdings. The restructuring is expected to be finalized by mid-July 2026, following an extraordinary shareholders’ meeting in June.
Hanwha’s management described the reorganization as a strategic effort to align each business group with its unique characteristics and operational environment. The company stated, “We are establishing management strategies tailored to each business group and building a decision-making structure that enables swift action, all to enhance corporate and shareholder value,” as reported by BBS News. The move is designed to allow for more agile decision-making and to foster independent, accountable leadership within each division.
The technical details of the split are significant. The division will occur through what’s known as a ‘physical division,’ in which current shareholders of Hanwha will receive shares in both the surviving and new companies in proportion to their existing holdings. The split ratio is set at 76% for the surviving entity and 24% for the new company, based on net asset book value, according to Maeil Business News. The new holding company will seek re-listing on Korea’s main stock exchange by July 24, 2026, ensuring liquidity and continuity for investors.
At the heart of this restructuring lies a generational transition in leadership. The split will sharpen the business boundaries among Chairman Kim Seung-yeon’s three sons, which industry watchers see as a prelude to possible further separation of the group’s business lines in the future. The youngest son, Kim Dong-seon, will oversee the new holding company, which will house the group’s tech and lifestyle businesses—areas he has already been actively managing, such as Hanwha Galleria, Hanwha Hotels & Resorts, Hanwha Robotics, and Hanwha Vision. Meanwhile, the eldest son, Kim Dong-kwan, will continue to steer the defense, shipbuilding, and energy sectors, while the second son, Kim Dong-won, will focus on financial services such as Hanwha Life Insurance, Hanwha General Insurance, and Hanwha Investment & Securities.
Ownership stakes among the Kim family are also clearly delineated: Chairman Kim Seung-yeon holds 11.33%, Kim Dong-kwan has 9.76%, and both Kim Dong-won and Kim Dong-seon each own 5.38%. This structure not only clarifies their respective spheres of influence but also sets the stage for potential future changes in the group’s governance, possibly including equity swaps or further division of the conglomerate, as reported by Yonhap Infomax.
The rationale behind the reorganization is rooted in the desire for specialization and speed. As an insider from the investment banking sector told Maeil Business News, “Because Hanwha has operated multiple businesses simultaneously, there was a risk that decision-making might be skewed toward the larger, traditional industries. By splitting the company, Hanwha is aiming for faster, more specialized decisions tailored to each business’s unique characteristics.” The new holding company is expected to seek synergy between its tech and lifestyle arms, positioning itself to explore new ventures and investment opportunities.
In tandem with the restructuring, Hanwha is also undertaking substantial shareholder-friendly measures. The company’s board has approved the cancellation of approximately 4 million treasury shares—worth nearly 400 billion won, or about 5% of the total outstanding common shares. This move is intended to fulfill promises made during last year’s preferred stock delisting and to enhance trust among minority shareholders. Hanwha also plans to buy back and cancel all remaining old preferred shares through off-market transactions, further streamlining its capital structure.
It isn’t just internal governance and shareholder value that are being addressed. Hanwha’s reorganization comes with a renewed focus on its core business areas. The surviving company will retain its traditional strengths in explosives, trading, and construction, as well as its flagship defense, shipbuilding, energy, and finance subsidiaries. These include Hanwha Aerospace (defense), Hanwha Ocean (shipbuilding and marine), Hanwha Solutions (energy), and Hanwha Life Insurance (finance). Hanwha Aerospace, as the major shareholder, will also continue to oversee Hanwha Systems (aerospace) and Hanwha Ocean.
The newly established holding company, Hanwha Machinery & Service Holdings, will manage the group’s tech and lifestyle affiliates. These range from Hanwha Vision (video security), Hanwha Momentum (logistics automation equipment), Hanwha Semitec (advanced manufacturing equipment), and Hanwha Robotics (robotics), to Hanwha Hotels & Resorts (hospitality and leisure), Hanwha Galleria (department stores and food), and Ourhome (group catering and food distribution). This entity will not only manage existing subsidiaries but will also serve as a platform for new investments and business development.
Importantly, the restructuring will not dilute the stakes of existing shareholders, as their holdings will be proportionally reflected in both companies. The split is set to be finalized on July 1, 2026, pending approval at the June 15 shareholders’ meeting. The new holding company’s listing on the main exchange is expected to follow on July 24.
Hanwha’s reorganization is being closely watched by financial analysts and industry observers, who see it as a strategic move to unlock value, strengthen competitiveness, and adapt to rapidly shifting business environments. The company’s decision to pursue a clear separation of its tech and lifestyle businesses from its traditional core reflects a broader trend among South Korea’s largest conglomerates, as they seek to become more agile and focused in an increasingly complex global marketplace.
With its ambitious restructuring, Hanwha is not just redrawing its corporate map—it’s signaling confidence in its next generation of leadership and its ability to thrive in both established and emerging industries. As the dust settles and the new entities take shape, the group’s evolution will be watched with keen interest by investors and competitors alike.
