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Hanwha Solutions to scale back 2.4 trillion won recapitalization plan after shareholder backlash

Published: 19 Apr. 2026, 18:36

Logo of Hanwha Solutions [JOONGANG ILBO]

Hanwha Solutions will downscale its recapitalization by 600 billion won ($408 million) from its original plan to issue 2.4 trillion won in new shares.

The move appears to reflect backlash from shareholders over what they had criticized as an “unplanned” initiative, as well as pressure from the state-run financial watchdog to revise its securities registration statement.

Hanwha Solutions initially announced its recapitalization plan on March 26. However, the company soon faced intense opposition from shareholders, as the issuance of new shares was not discussed during a regular shareholder meeting two days earlier. On April 9, the Financial Supervisory Service demanded that the company submit a revised securities filing.

The firm subsequently filed a revised disclosure statement on Friday entailing its plan to issue 56 million new shares to obtain an additional 1.81 trillion won in investment. The latest revision curtailed the number of newly issued shares by 16 million from the company's initial plan to secure 2.39 trillion won through 72 million new shares.

The board approved the changes the same day and submitted the revised filing to the FSS.

Hanwha Solutions said the reduced paid-in capital plan is expected to ease the subscription burden on existing shareholders and mitigate concerns over equity dilution. Under the revised plan, the capital increase ratio falls from 41.3 percent to 32.1 percent. The number of new shares allocated per existing share will also decrease from about 0.33 to 0.26.

Hanwha Corporation, which holds the largest stake in Hanwha Solutions at 36.66 percent, will apply for oversubscription at a rate of 120 percent, as initially planned.

Meanwhile, the reduction is expected to lower the major shareholder’s financial burden as well. The company also reaffirmed that there would not be any recapitalization through new shares through 2030.

Researchers work in a production line for Hanwha Q Cells in an undated photo. [HANWHA SOLUTIONS]

Another notable change is the corporate plan on how to use the supplied funds.

The company previously planned to allocate around 1.5 trillion won of the planned 2.4 trillion raised for debt repayment and about 900 billion won for future growth investments and upgrading facilities.

Under the revised plan, 900 billion won was assigned for debt repayment. The amount allocated for investment in future-oriented technology remains unchanged.

The shortfall of 600 billion won in debt payment will be covered by asset sales and other means of financing. The company plans to improve financial liquidity within the year by selling assets and raising funds through overseas subsidiaries.

The adjustment is seen as an effort to address criticism of heavy dependence on shareholder funds for debt repayment. The company appears to justify its rationale for recapitalization while maintaining the originally proposed spending on investments.

The company is expected to strive to improve communication with shareholders and investors. On Tuesday, corporate executives will hold a briefing session with researchers from securities firms to explain the expected effects of the recapitalization, self-help measures and investment plans. A first quarter earnings conference will be held on April 28.

Hanwha Group Chairman Kim Seung-youn [JOONGANG ILBO]

Hanwha Group Chairman Kim Seung-youn will forgo his salary from Hanwha Solutions starting next month, a move to bolster accountability in management. He received 5.04 billion won in compensation from the company last year.

Hanwha Solutions’ executives apologized for failing to properly inform shareholders of details of the recapitalization.

“We sincerely reflect on and apologize for the concern caused by our failure to sufficiently communicate with shareholders and the market regarding the scale and background of the offering in its early stages, said Nam Jung-woon, CEO of Hanwha Solution’s chemical division, and Park Seung-deok, head of its Hanwha Q Cells division.

“We will make every effort to actively communicate with shareholders and the market,” Nam and Park said.

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 LEE SU-JEONG [[email protected]]