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Hanwha scions to sell a combined 1 trillion won of Hanwha Energy shares

Published: 16 Dec. 2025, 17:20 Updated: 16 Dec. 2025, 19:11

From left: Kim Dong-seon, vice president of Hanwha Galleria; Kim Dong-won, CEO of Hanwha Life Insurance; Kim Seung-youn, chairman of Hanwha Group; and Kim Dong-kwan, vice chairman of Hanwha Group, pose for a commemorative photo at a ceremony marking the 100th anniversary of the birth of Hyunam Kim Jong-hee, the founder of Hanwha Group, in 2022. [HANWHA]

The second and third sons of Hanwha Group Chairman Kim Seung-youn are set to sell a combined 1 trillion won ($677.6 million) worth of shares in Hanwha Energy.

Hanwha said Tuesday that Kim Dong-won, CEO of Hanwha Life Insurance and the chairman’s second son, and Kim Dong-seon, vice president of Hanwha Galleria and the third son, will sell 5 percent and 15 percent stakes, respectively, in Hanwha Energy to a consortium of financial investors led by Korea Investment Private Equity, Korea Investment & Securities and Daishin Securities. The deal is valued at about 1.1 trillion won. Hanwha Energy approved the transaction at a board meeting earlier in the day.

Hanwha Energy sits at the top of the group’s ownership structure, as it is the largest shareholder of Hanwha Corp. with a 22.16 percent stake. Hanwha Corp., in turn, controls key affiliates including Hanwha Aerospace, Hanwha Solutions, Hanwha Life Insurance and Hanwha Galleria. After the transaction, ownership of Hanwha Energy will be held by Kim Dong-kwan, vice chairman and the chairman’s eldest son, with 50 percent; Kim Dong-won with about 20 percent; Kim Dong-seon with 10 percent; and financial investors with about 20 percent.

Hanwha Energy’s valuation could rise further as major group affiliates continue to expand their businesses in areas such as defense, shipbuilding and energy. A Hanwha Group representative said the share sale is expected to enhance governance transparency by bringing in external investors and to lay the groundwork for a mid- to long-term initial public offering.

Hanwha Energy was launched in the late 2000s with heat and power plants in Yeosu and Gunsan. The energy business now accounts for about 15 percent of its total revenue. The company has recently been restructuring its portfolio toward environmentally friendly energy and future technologies in aviation, shipbuilding and marine industries.

In April, Chairman Kim gifted half of his 22.65 percent stake in Hanwha Corp. — equivalent to 11.32 percent — to his three sons: 4.86 percent to Kim Dong-kwan, the family's first son, and 3.23 percent each to Kim Dong-won and Kim Dong-seon. Analysts say the eldest son's decision not to participate in the Hanwha Energy stake sale further solidifies his position as the group’s heir apparent. The partial divestment by Kim Dong-won and Kim Dong-seon is aimed at paying gift taxes and securing funds for new business investments.

Kim Dong-seon, who has been rapidly expanding his business portfolio through mergers and acquisitions, is expected to receive about 800 billion won from the deal. He has recently acquired the catering company Ourhome and the urban luxury resort Paraspara, and is also pursuing the acquisition of resort operator Phoenix JoongAng, a JoongAng Group affiliate.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KI-HWAN [[email protected]]