Hanhwa to resolve ordering on relationship based… A standard tactics of holding change to have been selected
Park Jung Il | comja77@ | 2018-06-01 15:25:33

The Hanwha Group merged Hanwha S & C and Hanwha Systems and reorganized Hanwha, which is the top-ranking parent company, to strengthen its responsible management. Hanwha S & C, a group IT service provider, has resolved the suspicions that it will work. It is expected that the company will succeed in the management of the holding company by converting it into a holding company.

Hanwha Group said on May 31, Hanwha S & C and Hanhwa Systems are expected to hold a board meeting to promote the merger between the two companies. The merger of the two companies will start in August with the mission of `Hanhwa System`.

Besides, H-Solution, formerly the parent company of Hanwha S & C, has decided to sell its 11.6% stake in the Hanwha system to the Stick consortium and lower its stake to 14.5%. HEC has 50% stake in Kim Dong-gwan, Kim Dong-won, managing director of Hanwha Life, and 25% of Kim Dong-sun, a 25% shareholder. Unlisted companies whose total shareholder`s share falls below 20% in a group of large corporations over KRW 5 trillion in assets under the Fair Trade Act are excluded from the regulation of the Fair Trade Commission.

In the case of Hanwha S & C, the percentage of internal sales, which was 55.3% in 2013, increased to 80.8% last year, raising doubts about the owner`s family. Accordingly, the FTC conducted an on-site investigation of the Hanhwa Building in Seoul, and Hanhwa Group said it would release countermeasures by the end of this month.

The Hanwha Group also revealed that it will introduce various systems for board-based management and protection of shareholder interests. First, in order to strengthen the independence of outside directors, we decided not to appoint outside directors from the group, but also to introduce an open outside director recommendation system.

It decided to reorganize the internal trading committee and establish a win-win management committee in order to revitalize the committee within the board of directors. The company also decided to appoint a "outside director of shareholder rights protection" to act as a communication channel for shareholders and to present his opinions to the board of directors.

As if Samsung had eliminated its future strategy room, it decided to dismantle the management planning room of the group and to perform the function representing the Hanwha Group, which is the top-ranking parent company. Instead, the Communication Committee and the Compliance Committee will be established to strengthen communication at the Group level. Compliance chairman Lee Hong-hoon is chief justice.

On the other hand, the Hanwha Group is interested in how to take over the management rights after the action. Once the shares of the three sons of the Hanwha system are lowered, even if the three sons sell their stakes after the Hanwha system is listed, it is not enough for Kim Seungyun to inherit the Hanwha stake. The 22.6% stake in Hanwha, the controlling shareholder of Hanwha Corp., is worth around KRW 6.1 trillion, based on the closing price on May 31. KRW 4 trillion is needed to raise the maximum inheritance tax rate of 50% to the management right premium. As a result, there is no point in the succession of the management right now.

Therefore, it seems likely to take the time to prepare for succession by gradually transitioning to a holding company. Though he has had a few health complaints recently, Kim is still 66 years old, and he seems to keep his position for a few more years in a way that he can add management classes to his son.

Besides, even if the company is converted into a holding company system to strengthen its corporate governance structure, there is a need to establish a middle holding company to eliminate the juncture separation regulation. In the business world, brothers have a strong sense of how to own and hold common landlords and financial landlords.

By Park Jung Il comja77@

[ copyright ⓒ The Digitaltimes ]