Hanwha sells its cluster munition business
Hanwha Corporation is selling a cluster munition business for 7.8 billion won ($6.8 million) in order to meet the environmental, social and governance (ESG) standards, the company said Monday.
The business, which was spun off from Hanwha Corporation on Monday as Korea Defense Industry (KDI), is being sold to a special purpose company.
Of the 400,000 shares Hanwha Corporation holds in KDI, it is selling 312,000 shares to KDI, while distributing the rest of the shares to a newly established entity’s employees in a form of compensation, according to Hanwha Corporation.
In July, the company said it is spinning off its cluster munition business from its defense business to adhere to the ESG values, promising to meet standards demanded by the international community.
“We decided to spin off the cluster munition business to better follow the ESG values, but the business itself is not exactly in line with the ESG criteria, so we have decided to sell it,” a spokesperson for Hanwha Corporation said.
KDI is based in Sejong.
BY JIN MIN-JI [firstname.lastname@example.org]