Hanwha Solutions, Merger of Galleria Co., Ltd. and Hanwha Urban Development

Maximizing Management Efficiency through Efficient Resource Allocation and Rapid Decision-Making
Expanding Premium-Based Retail and Development Projects from Materials and Solar Energy

[Asia Economy Reporter Hwang Yoon-joo] Hanwha Solutions is merging its subsidiary Hanwha Galleria. Another subsidiary, Hanwha Urban Development, will also undergo a spin-off of its asset development business division and Ulju land division, followed by a merger of the asset development business division.

Hanwha Solutions announced on the 8th that it held a board meeting and approved the merger of Hanwha Galleria and Hanwha Urban Development, scheduled for April next year (tentative).

The merger of these subsidiaries, wholly owned by Hanwha Solutions, was decided with the aim of maximizing management efficiency through efficient allocation of resources between divisions and simplification of the decision-making structure.

With this merger, Hanwha Solutions will operate with a total of six divisions, adding two divisions (Galleria and Urban Development) to the existing four divisions (Chemical, Q CELLS, Advanced Materials, Strategy).

Except for the Urban Development division, the other five divisions will operate under individual CEO systems, while the Urban Development division will be managed under a division head system considering the scale of the business. Hanwha Solutions will continue to advance the existing materials and solar power business structure.

After the merger, the Galleria and Urban Development divisions will be able to maximize profitability of existing businesses due to reduced capital procurement costs from improved credit ratings. In particular, the Galleria division is expected to be advantageous for new investments in the premium retail sector.

Hanwha Galleria and Hanwha Urban Development are 100% consolidated subsidiaries of Hanwha Solutions, so there will be no change in the financial structure of the newly merged corporation.

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