이 기사는 2021년 04월 01일 08:11 thebell 에 표출된 기사입니다.

H-Solution, which is wholly owned by three sons of the Hanwha Group chairman Kim Seung-yeon, is set to take up more shares in Hanwha Systems than allotted to it in the company’s upcoming rights issue, a move that indicates the founding family’s confidence in the company’s growth potential.

Hanwha Systems, the defense and information technology arm of the conglomerate Hanwha, announced Monday its plans to raise 1.2 trillion won ($1.06 billion) in a rights issue to invest in new businesses such as satellite communications, urban air mobility and digital platforms over the next three years.

The following day, H-Solution, which owns 13.41% of Hanwha Systems, said in a filing that it would subscribe for 157 billion won worth of the company’s new shares in the rights issue – equivalent to 20% more than the number of shares allotted to it.

H-Solution is controlled by Hanwha chairman Kim Seung-yeon’s three sons – Dong-kwan, Dong-won and Dong-seon – with each holding 50%, 25% and 25% stakes in the company. Solar company Hanwha Energy is 100% owned by H-Solution.

The three brothers, who are the third generation of the conglomerate’s founding family, hold senior positions in affiliates under the Hanwha umbrella: Dong-kwan, the oldest of the three, is president of Hanwha Solutions, and Dong-won and Dong-seon serve as managing director at Hanwha Life Insurance and head of global strategy at Hanwha Energy respectively.



Hanwha Systems was split off from Hanwha S&C (later renamed H-Solution) in 2018. When the company went public on the Seoul stock exchange in the following year, H-Solution decided not to sell its stake in the offering. Hanwha Systems shares have almost doubled since its market debut, allowing H-Solution to make large gains on paper.

H-Solution has reaffirmed its confidence in Hanwha Systems’ growth prospects by making a decision to take up additional shares in the company in the upcoming rights issue, industry watchers said.

“H-Solution seems to believe that (Hanwha Systems’) value could increase significantly in the mid to long-term with Hanwha Systems expected to lead the future growth of the broader conglomerate,” said an industry insider.

Part of succession plan

H-Solution’s move to increase its shareholding in Hanwha Systems is also seen as part of a succession plan. H-Solution has been gradually raising its stake in Hanwha Corp, the conglomerate’s de facto holding company, over the past years, and now holds 5.19%.

An Increase in the value of Hanwha Systems shares would allow H-Solution to free up more cash to continue to purchase shares in Hanwha Corp. Chairman Kim Seung-yeon currently holds some 22% of the holding company, while H-Solution and the three brothers together own 12.97%.

“The conglomerate’s succession planning efforts appear to be in early stages as chairman Kim Seung-yeon returned to management this year,” said another industry insider. “His three sons will need to prove their management skills and also will likely try to grow their financial resources to increase control of the holding company.” (Reporting by Ki-soo Park)