[비즈한국] Hanwha000880 Group is currently undergoing a corporate split. Once completed, it is expected that Kim Dong-kwan (43), the eldest son of Hanwha Group Chairman Kim Seung-youn (74), will lead Hanwha Corporation, while the third son, Kim Dong-seon (37), Vice President of Hanwha Hotel & Resort, will lead Hanwha Machinery & Services Holdings. In contrast, the group's financial affiliates, led by the chairman's second son, Kim Dong-won (41), President of Hanwha Life088350, will remain subsidiaries of Hanwha Corporation. Due to the nature of financial firms, a split in the short term is difficult. Nevertheless, the business world expects that Hanwha Life will also eventually become independent from Hanwha Corporation.
Against this backdrop, Hanwha Life has recently drawn attention by showing an active interest in M&A. Following its attempt to acquire IGIS Asset Management last year, it is reported that the company is currently reviewing the acquisition of Acuon Capital. Analysts suggest this is an effort to bolster Hanwha Life's self-reliance in preparation for a future spin-off.
Hanwha Life's Spin-off: A Matter of Timing
Hanwha Group is currently in the process of a corporate split. The main content of the split involves establishing a new entity, Hanwha Machinery & Services Holdings, and incorporating technology and life-sector affiliates as its subsidiaries. The split is scheduled to be completed within July, following procedures such as an extraordinary shareholders' meeting in June.
In the business world, it is expected that once the split is complete, Vice President Kim Dong-kwan will lead Hanwha Corporation, while Vice President Kim Dong-seon will lead Hanwha Machinery & Services Holdings. Vice President Kim Dong-seon already resigned from Hanwha Corporation in March. This is interpreted as a move to focus on managing Hanwha Machinery & Services Holdings in line with the split. Furthermore, there are predictions of a separation of the group into Hanwha Corporation and Hanwha Machinery & Services Holdings.
Amidst this, President Kim Dong-won remains relatively quiet. President Kim oversees the financial businesses of Hanwha Group. Financial affiliates were not included in this current split.
The separation of Hanwha Life is more complex than that of Hanwha Machinery & Services. This is because, under current law, establishing a financial holding company requires authorization from financial authorities. However, from a long-term perspective, the independence of Hanwha Life is necessary for Hanwha Group. This is because, under the principle of separation of industrial and financial capital, a general holding company cannot own a financial company.
Hanwha Corporation is currently the largest shareholder, holding a 43.24% stake in Hanwha Life. While Hanwha Corporation is not currently classified as a holding company, it would be forced to transition into one if the value of its subsidiary shares exceeds 50% of its total assets. Given the growth rate of Hanwha Group's affiliates, the business community predicts that Hanwha Corporation will transition into a holding company within a few years. For this reason, the spin-off of Hanwha Life is seen as only a matter of time.
Pursuing Acuon Capital Acquisition, Expecting Synergy
For President Kim Dong-won, securing Hanwha Life's competitiveness is essential, if only to prepare for a future spin-off. Against this backdrop, Hanwha Life's recent move to acquire Acuon Capital is drawing attention. Hanwha Life's subsidiaries include Hanwha General Insurance000370, Hanwha Asset Management, Hanwha Investment & Securities003530, and Hanwha Savings Bank. Since there is no capital company among Hanwha Life's subsidiaries, acquiring Acuon Capital could yield synergy effects.
Acuon Capital has Acuon Savings Bank as a subsidiary. Acquiring Acuon Capital effectively means acquiring Acuon Savings Bank as well. Savings banks are required to handle a certain percentage of loans within their designated business areas. Currently, the business area for Hanwha Savings Bank is Incheon and Gyeonggi Province, while Acuon Savings Bank's area is Seoul. Therefore, Hanwha Life's acquisition of Acuon Capital would also have the effect of expanding its savings bank's business territory.
The problem is the price. The market price for Acuon Capital is estimated to be around 1 trillion won. According to its business report, Hanwha Life's cash and cash equivalents were 3.1031 trillion won on a consolidated basis at the end of last year. Hanwha Life's debt-to-equity ratio was 974.00% as of the end of last year. Considering its current financial structure, an investment of 1 trillion won could be a burden. Additionally, it is known that Meritz Financial Group is also interested in acquiring Acuon Capital. With multiple potential buyers, it is difficult to expect the sale price to drop significantly.
However, Acuon Capital's recent performance is not good. Its net profit fell 18.22% from 80.2 billion won in 2024 to 65.6 billion won in 2025. Lee Jae-woo, a senior analyst at Korea Investors Service, analyzed regarding Acuon Capital: "Deteriorating asset quality due to the downturn in real estate and the real economy, along with the burden of funding costs, are exerting downward pressure on profitability. While it is securing operating profit by expanding assets under management centered on corporate finance, the still-high funding costs are limiting interest margin rates."
If the performance does not rebound after the acquisition of Acuon Capital, the acquirer will face significant losses. For this reason, some in the financial sector predict that if the sale price for Acuon Capital is too high, Hanwha Life will not necessarily go through with the acquisition. Hanwha Life also attempted to acquire IGIS Asset Management last year, but it did not lead to an actual acquisition. Hillhouse Investment was selected as the preferred bidder for IGIS Asset Management.
A Hanwha Life official stated regarding the acquisition of Acuon Capital, "We are reviewing it as one of several properties available on the market."