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Hanwha Group chief to hand over 11.32% of shares to sons

Published: 31 Mar. 2025, 17:35 Updated: 31 Mar. 2025, 19:05

YOON SO-YEON
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Hanwha Group chairman Kim Seung-youn, center, poses with his three son and The Heritage Foundation president Edwin Feulner, second from right, at The Plaza hotel in central Seoul on Nov. 8, 2022. From left are Kim Seung-youn's sons Kim Dong-seon, Kim Dong-kwan and Kim Dong-won. [HANWHA GROUP]

Hanwha Group Chairman Kim Seung-youn will hand over 11.32 percent of his shares of Hanwha, half of what he currently owns, to his three sons, finalizing the familial succession of the seventh-largest conglomerate entity in Korea.

Chairperson Kim will gift a total of 11.32 percent to his three sons out of the 22.65 percent he currently owns. He will give his eldest son, Kim Dong-kwan, 4.86 percent of his shares, while giving 3.23 percent each to Kim Dong-won and Kim Dong-seon.

Kim Dong-kwan is the vice chairperson of Hanwha Group as well as the co-CEO of Hanwha, Hanwha Solutions and Hanwha Aerospace. Kim Dong-won, the second eldest, is the chief global officer of Hanwha Life, while Kim Dong-seon is the vice president of Hanwha Galleria, Hanwha Hotels & Resorts and Hanwha Vision.

After the deal is concluded on April 30, Kim Seung-youn will own 11.33 percent of Hanwha, Kim Dong-kwan 9.77 percent, Kim Dong-won 5.37 and Kim Dong-seon 5.37. The three sons own 100 percent of Hanwha Energy, which owns 22.16 percent of Hanwha, giving the three sons 42.67 percent of the group in total for a controlling stake in the company.

"Chairman Kim Seung-youn decided to gift the shares in order to minimize any unnecessary controversy surrounding the succession and resolve any misunderstanding," Hanwha said in a press release.

Hanwha logo [HANWHA]

Hanwha has been accused of trying to "sneak" control of Hanwha to the three sons by issuing 3.6 trillion won ($2.5 billion) in new shares of Hanwha Aerospace despite the anticipated dilution of shares. Hanwha Aerospace board members agreed to raise 3.6 trillion won through newly issued stock earlier this month but were threatened with a probe by the Financial Supervisory Service last week.

"The move aims to block any speculation linking the succession to Hanwha Aerospace issuing new stocks or Hanwha Ocean's stock acquisition. This is a bold decision made to maximize shareholder value and fortify a responsible management system, as well as contribute to the national economy."

Kim Seung-youn will remain chairperson of Hanwha Group "to share his expertise in professional management and global network," according to Hanwha.

The three sons will have to pay 221.8 billion won in inheritance taxes. Hanwha closed at 40,950 won per share on Monday, down 1 percent from the previous trading day. It was the 120th largest company by market cap on the Kospi market as of Monday.

BY YOON SO-YEON [[email protected]]