Hanwha Group Chairman Kim Seung-youn, third from left, poses with his three sons during a ceremony for the 100th anniversary of the birth of his late father and Hanwha Group founder Kim Chong-hee, at 63 Convention Center in Seoul in this November 2022 photo. From left are Hanwha Galleria Vice President Dong-seon, Hanwha Life Insurance President Dong-won, the chairman and Hanwha Group Vice Chairman Dong-kwan. Courtesy of Hanwha Group

Hanwha Group has become more specific about how to hand over Chairman Kim Seung-youn's control of the group's affiliates to his three sons.

With the announcements this week of its plans for corporate governance restructuring and a large-size acquisition deal, the nation's seventh-largest business group took a step closer to the chairman's oldest son to inherit the group's core units of defense and energy subsidiaries while tasking the second-oldest with managing financial affiliates and the youngest with leading the retail, construction, robotics and machinery businesses.

On Monday, Hanwha Aerospace's board of directors agreed to increase the company's stake in Hanwha Ocean to 42 percent from 34.7 percent by acquiring a combined 7.3 percent stake in the shipbuilder next month from other Hanwha units for about 1.3 trillion won ($896 million).

Hanwha Aerospace has been virtually under the sole control of Hanwha Group Vice Chairman Kim Dong-kwan, the chairman's oldest son. The aerospace and defense unit is controlled by Hanwha Corp., the group's holding firm. The eldest son is the third-largest shareholder of the holding firm.

While being the third-largest shareholder of the holding firm, the vice chairman owns a 50 percent stake in Hanwha Energy, the second-largest shareholder of Hanwha Corp. This means the oldest son has the biggest influence on the defense firm except for his father.

Therefore, the trading of Hanwha Ocean shares is expected to allow the oldest son to tighten his grip over the group's entire defense business across sea, air and land defense systems.

"The share purchase agreements show our blueprint to achieve the goal of becoming a global defense and shipbuilding company by creating a synergy with the shipbuilding and offshore unit, which has great growth potential," a Hanwha Aerospace official said.

Hanwha Group Chairman Kim Seung-youn, front row center, and Vice Chairman Kim Dong-kwan, second row center, take a selfie with employees of Hanwha Aerospace at the company's R&D Campus in Daejeon in this March 2024 photo. Courtesy of Hanwha Group

On the day of Hanwha Aerospace's agreement to acquire additional Hanwha Ocean shares, Hanwha Precision Machinery announced its decision to rename itself as Hanwha Semitech and named the group's third son, Kim Dong-seon, as the vice president for its future vision. The third son is already vice president of Hanwha Galleria and Hanwha Hotels & Resorts.

As a result, the chairman's youngest son will play a major role in another machinery affiliate of the group, in addition to Hanwha Vision, Hanwha Momentum and Hanwha Robotics.

"Based on innovative technology secured through constant investments in research and development, we will reshape the semiconductor equipment market," the vice president said, promising not to get paid for his new job.

Two days later, Hanwha Hotels & Resorts announced that it signed an agreement that day to take over a controlling 59 percent stake in Ourhome, Korea's second-largest food catering service provider, for 869.5 billion won.

According to industry officials, the chairman's third son directed the deal for his food tech vision. As the person who brought the Five Guys hamburger chain from the United States, he has accelerated efforts to utilize the technology of Hanwha Robotics for the group's restaurant business.

Once the transaction is finished, Hanwha Group will be able to return to the food catering business five years after it sold Foodist in 2020.

However, the third son still needs to overcome the opposition from some members of the Ourhome owner family, who collectively hold a 40.27 percent stake in the catering firm, and address market doubts over the methods of financing the deal.

"The acquisition of Ourhome is intended to enhance our competitiveness in the food and beverage business," Hanwha Hotels & Resorts said in its regulatory filing.

Hanwha Life Insurance President Kim Dong-won, the chairman's second-oldest son, has been drawing public attention lately as the insurer's chief global officer.

Last month, he participated in the World Economic Forum in the Swiss city of Davos alone without his two brothers, who had attended the annual meeting with him in previous years. During the event, he formed partnerships with various global investment companies.

Additionally, the life insurer has reportedly reinforced its communications department in an apparent attempt to promote its president.