Hanwha Machinery & Services Holdings (hereinafter Hanwha M&S), which encompasses Hanwha Group’s Tech and Life Solutions divisions, has been officially launched.

Hanwha announced that on the morning of the 3rd it held a launch ceremony for Hanwha M&S at The Plaza in Jung-gu, Seoul, officially declaring the establishment of the company. On the same day, three inside directors including CEO Kim Hyung-jo and four independent directors including Hanyang University Professor Cho Min-ho convened a board meeting and resolved key agenda items such as ▲ appointment of the CEO and other executives ▲ establishment of various committees ▲ enactment of internal regulations. President Kim Dong-sun, Head of Future Strategy, also attended the ceremony.

The newly established holding company Hanwha M&S is divided into Tech and Life Solutions divisions. The Tech division includes affiliates such as Hanwha Vision (video security), Hanwha Momentum (logistics automation equipment), Hanwha Semitec (advanced manufacturing equipment), and Hanwha Robotics (robots). The Life division includes affiliates such as Hanwha Hotel & Resort (hotels, resorts, leisure, and dining), Hanwha Galleria (department stores and food & beverage), and Ourhome (group catering and food material distribution).

Including subsidiaries’ subsidiaries, there are a total of 57 affiliated companies (including overseas corporations). As of the end of last year on a consolidated basis, they generated approximately KRW 6 trillion in revenue, with total assets of about KRW 11.3 trillion. Hanwha Vision and Hanwha Galleria are listed on the Korea Exchange’s KOSPI market.

The primary objective of establishing the holding company and executing the spin-off is to further enhance the specialization of each business within Hanwha Group and to generate synergies that will strengthen the competitiveness of each company. Under the leadership of Hanwha M&S, the Tech and Life divisions plan to swiftly implement management strategies that reflect business characteristics and market conditions, with the goal of continuously enhancing corporate and shareholder value.

A Hanwha M&S official stated, “With the resolution of the conglomerate discount, investment in and business expansion of the Tech and Life divisions are expected to accelerate,” adding, “We expect that in the near future both divisions will emerge as new core affiliates within the group.”

The newly established Hanwha M&S plans to list on the KOSPI market on the 25th of this month.

Meanwhile, the surviving entity Hanwha will retain its existing key affiliates such as Hanwha Aerospace (defense), Hanwha Solutions (energy), and Hanwha Life Insurance (finance). In addition, Hanwha Systems (space and aviation) and Hanwha Ocean (shipbuilding and marine), in which Hanwha Aerospace is the major shareholder, will also be incorporated under the surviving entity.

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