Hanwha Corp to split into two holding entities in succession move

SEOUL, Jan 16 — Hanwha Corp, the holding company of South Korea's seventh-largest conglomerate Hanwha Group, has decided to split into two holding entities, a move analysts say sharpens succession lines within the family-owned business.

The spin-off will create two separate holding companies, according to an official announcement from Hanwha Corp.

Details on the specific structure and timeline of the split were not immediately disclosed in the initial statement.

The decision is widely seen as part of a succession plan for the Hanwha Group, which is controlled by the Kim family.

Hanwha Group ranks as South Korea's seventh-largest conglomerate by assets, with interests spanning energy, chemicals, finance, and construction.

Family-owned conglomerates, known as chaebols in South Korea, often undergo restructuring to facilitate leadership transitions to the next generation.

Similar spin-offs have occurred in other major Korean conglomerates in recent years to streamline ownership and management.

The move could impact Hanwha's operations and strategic direction, though immediate effects on business activities are expected to be minimal.

Further details are anticipated to be released in the coming weeks as the company finalizes the split plan.