Hanwha Solutions, a major player in the South Korean energy and materials sector, has set the stage for a sweeping transformation in both its financial health and its ambitions in the global solar market. On March 26, 2026, the company’s board approved a massive paid-in capital increase worth approximately 2.4 trillion KRW (about $1.8 billion), marking one of the largest rights offerings in its history. The move, as reported by News Tomato, Yonhap Infomax, and other leading outlets, is designed to shore up Hanwha Solutions’ balance sheet and fuel new investments in next-generation solar technologies.
The capital increase will be executed through a rights offering, with existing shareholders given priority to subscribe to the 72 million new common shares being issued—an amount equivalent to 42% of the company’s current common shares. The record date for share allocation is set for May 14, 2026, and the exact issue price will be finalized on June 17. Existing shareholders will have their subscription window from June 22 to June 23, while any unsubscribed shares will be made available to the general public from June 25 to June 26. The new shares are scheduled to be listed on July 10, 2026, according to Smart Today.
The lion’s share of the funds—about 1.5 trillion KRW—will go toward repaying maturing corporate bonds, commercial papers, and outstanding loans. This is no small feat, considering the company’s ongoing struggle with credit rating pressures. Despite having sold off 1.6 trillion KRW in assets and issuing 700 billion KRW in hybrid capital over the past two years, Hanwha Solutions still faced mounting financial burdens amid a global solar industry downturn. The company’s leadership is aiming to use this capital injection to bring its consolidated debt ratio below 150% by the end of 2026 and manage net borrowings at around 9 trillion KRW. Their long-term vision? By 2030, they hope to reduce the debt ratio to 100% and net borrowings to 7 trillion KRW—a significant improvement in financial soundness.
“We will continue to invest in core growth areas such as renewable energy and high value-added materials to strengthen our mid- to long-term business competitiveness and profit base,” said Nam Jung-woon, Head of the Chemical Division, and Park Seung-deok, Head of the Q Cells Division, in a joint statement. They added, “By maintaining a minimum dividend policy and stable shareholder returns, and by expanding returns in line with business growth and repaying borrowings, we will enhance our financial soundness.” This commitment to both business growth and shareholder value was echoed across all major reports, including News Tomato and Yonhap Infomax.
The remaining 900 billion KRW from the capital increase is earmarked for investments in Hanwha Solutions’ solar business—specifically, in next-generation technologies that could redefine the company’s position in the global market. Of this, 100 billion KRW will be spent on building a perovskite tandem pilot production line. Perovskite tandem technology is regarded by industry experts as a potential “game changer,” offering higher efficiency and output than conventional solar cells. Once the pilot line demonstrates both reliability and scalability, Hanwha Solutions plans to channel an additional 800 billion KRW into constructing gigawatt-scale mass production lines and expanding its TOPCon (Tunnel Oxide Passivated Contact) production capacity. TOPCon, an N-type cell technology, is seen as a crucial step toward the eventual tandem conversion and is already known for its superior efficiency compared to traditional PERC cells.
Hanwha Solutions’ strategy is to shift its entire production structure toward high-efficiency, high-output solar products. The company is betting that this focus will allow it to secure a competitive edge in both domestic and international markets, even as the solar industry faces cyclical downturns and intensifying competition. By 2030, the company has set ambitious targets: consolidated sales of 33 trillion KRW and operating profits of 2.9 trillion KRW.
But the announcement wasn’t all sunshine and optimism—at least not on the trading floor. Following the news of the capital increase, Hanwha Solutions’ stock price took a sharp hit. According to News Top Korea, shares plunged by about 20% during the March 26 trading session, with the price falling to 36,250 KRW at 3:01 PM, down 8,750 KRW (or 19.44%) from the previous day’s close. The intraday low reached 35,850 KRW. Such a reaction isn’t unusual; large-scale rights offerings often trigger concerns about share dilution and short-term earnings impact, even if the long-term strategy is sound.
The company’s capital structure and major shareholders also came under the spotlight in the wake of the announcement. As of the end of 2025, Hanwha Corporation held a 36.31% stake in Hanwha Solutions, followed by the National Pension Service with 5.75% and the employee stock ownership association with 0.82%.
Hanwha Solutions has also laid out a clear policy for shareholder returns over the next five years. From 2026 to 2030, the company plans to allocate 10% of its consolidated net income to dividends or share buybacks, with a guaranteed minimum dividend of 300 KRW per share. This move, as detailed by News Tomato, is designed to reassure investors and provide a stable, predictable return even as the company undertakes major investments and restructurings.
Executives have repeatedly stressed that the capital increase is not just about weathering the current financial storm but about positioning Hanwha Solutions for long-term leadership in renewable energy and advanced materials. The focus on perovskite tandem and TOPCon technologies, in particular, signals a willingness to bet big on innovation—potentially reshaping the competitive landscape of solar manufacturing.
Of course, the journey won’t be without its bumps. The global solar market remains volatile, and the company’s financial restructuring will require careful execution to avoid further shocks to its credit rating or shareholder confidence. Yet, with a clear roadmap for debt reduction, growth investment, and shareholder returns, Hanwha Solutions appears determined to chart a course toward greater stability and market leadership.
In the end, Hanwha Solutions’ bold capital increase is more than just a financial maneuver—it’s a statement of intent, signaling the company’s readiness to invest in its future, embrace technological change, and reward those who stick with it for the long haul.