Hanwha Group chief transfers half of his stake to 3 sons

Seoul, March 31 (IANS) Hanwha Group Chairman Kim Seung-youn has transferred half of his stake in the group's holding company, Hanwha Corp., to his three sons, the company said on Monday, effectively completing the group's leadership succession.

According to a regulatory filing, Kim has transferred a combined 11.32 percent stake in Hanwha Corp. to his three sons.

Vice Chairman Kim Dong-kwan received 4.86 percent, while President Kim Dong-won and Executive Vice President Kim Dong-seon each received 3.23 percent.

Kim previously held a 22.65 percent stake in Hanwha Corp., the de facto holding company of the conglomerate. Following the transfer, he now retains an 11.33 percent stake.

Following the share transfer, Hanwha Energy Corp. holds a 22.16 percent stake in Hanwha Corp., while Chairman Kim owns an 11.33 percent stake. Vice Chairman Kim Dong-kwan holds 9.77 percent, and the younger sons each hold 5.37 percent.

As the three sons already own 100 percent of Hanwha Energy, their combined stake in Hanwha Corp. now totals 42.67 percent, effectively consolidating control of the group's management with the next generation.

Hanwha Group said Chairman Kim decided to gift the shares to eliminate unnecessary speculation surrounding the group's succession and allow the company to focus on its core business operations.

The move also comes in response to speculation linking Hanwha Aerospace Co.'s recent rights offering and its acquisition of a stake in Hanwha Ocean to the succession planning.

The group emphasised that these decisions were strategic business moves unrelated to the succession.

Last month, reports surfaced that German shipping firm Hapag-Lloyd may turn to Hanwha Ocean for its next batch of container ship newbuildings worth over 1.7 trillion won ($1.2 billion), according to foreign news media. Hapag-Llyod is considering placing an order to build six liquefied natural gas (LNG) dual-fuel container carriers with Hanwha Ocean, global shipping news source TradeWinds reported.