Hanwha maintains a well-balanced business portfolio spanning aerospace and defense, energy, marine and materials, finance, machinery, and distribution and services, enabling the company to respond proactively to a rapidly changing business environment and continue its growth. (Image from Hanwha Group webpage)
SEOUL, Jan. 14 (Korea Bizwire) — Hanwha Corp., the de facto holding company of Hanwha Group, said Wednesday it will split its operations to create a new holding company for its technology and lifestyle businesses, while keeping its defense and shipbuilding units under the existing corporate structure—a move aimed at improving governance and sharpening strategic focus.
Hanwha’s board approved the plan earlier in the day. The spin-off is scheduled to be completed in July, pending approval at an extraordinary shareholders’ meeting in June.
Under the reorganization, technology subsidiaries including Hanwha Vision and Hanwha Robotics, along with lifestyle units such as Hanwha Galleria and Hanwha Hotel & Resorts, will be placed under a newly established entity, Hanwha Machinery & Service Holdings.
Defense, shipbuilding and offshore businesses—including Hanwha Aerospace and Hanwha Ocean—will remain with Hanwha Corp., alongside energy and financial units such as Hanwha Solutions and Hanwha Life Insurance.
Company officials said the split is designed to allow each business group to pursue management strategies better aligned with its market environment, while speeding up decision-making and capital allocation.
This photo, taken on Dec. 29, 2025, and provided by Hanwha Aerospace Industries Co., shows Son Jae-il (from L), president and CEO of the South Korean defense firm, Artur Kuptel, head of the Polish Armament Agency, and Piotr Wojciechowski, president of WB Group, signing a contract at the Museum of the Polish Army in Warsaw to produce Chunmoo multiple launch rocket systems in Poland. (Yonhap)
After the separation, Hanwha Corp. plans to concentrate on its core defense and shipbuilding operations, sectors that have gained renewed investor attention amid rising global defense spending. The new holding company, operating independently, will focus on growth investments in technology and consumer-facing businesses that the group believes have been undervalued within the conglomerate structure.
Hanwha said it expects the reorganization to help narrow the so-called conglomerate discount that has weighed on its valuation.
The split ratio has been set at 76.3% for the surviving Hanwha Corp. and 23.7% for the new holding company, based on net asset book value. Existing shareholders will receive shares in both entities in proportion to that ratio.
Separately, the company said it canceled 456.2 billion won ($308 million) worth of treasury shares on Wednesday as part of efforts to boost shareholder value.
Hanwha Aerospace displays a K9 self-propelled howitzer at the Association of the U.S. Army (AUSA) 2025 Annual Meeting and Exposition at the Walter E. Washington Convention Center in Washington on Oct. 13, 2025. (Yonhap)
M. H. Lee (mhlee@koreabizwire.com)
