Hanwha Distribution, Hotel, and Leisure Transformation... Growing Role of Third Son Kim Dong-seon

Galleria Department Store Focuses on Differentiated VIP Targeted Marketing Capabilities
Executive Director Kim Concentrates on Discovering and Commercializing New Premium VIP Content
Group Plans Channel Diversification Including E-Commerce
Joins Yeouido IFC Acquisition Battle... Expanding Galleria's Capabilities
Also Strengthening Efforts in Hotel & Leisure, Seorak Complex Development, and New Equestrian Business

Galleria Luxury Hall.

Kim Dong-sun, the third son of Hanwha Group Chairman Kim Seung-yeon and Executive Director of Future Strategy at Hanwha Hotels & Resorts (pictured), is drawing industry attention as he takes charge of the group’s new distribution business following his oversight of hotels and leisure. This is significant because these business sectors are all facing major changes in the 'post-COVID-19' era, highlighting the importance of Executive Director Kim’s role in overseeing them.

According to industry sources on the 6th, Hanwha Group’s distribution, hotel, and leisure sectors are on the brink of significant transformation. Hanwha Solutions’ Galleria division is focusing on upgrading offline department stores such as the Galleria Luxury Hall in Apgujeong-dong, Seoul, while also diversifying channels and content and exploring new business opportunities.

The domestic department store industry experienced a 9.9% contraction in 2020 compared to the previous year due to the impact of COVID-19, but grew by 22.8% last year, driven by a surge in revenge spending centered on luxury goods. As of last year, Galleria’s market share in this sector stood at approximately 8.1%. Galleria anticipates that consumer demand, which had been concentrated domestically, will disperse with this year’s reopening of the economy, making differentiated VIP-targeted marketing to secure loyal customers more crucial than ever. This is why Executive Director Kim, who joined as Head of New Business Strategy for the Galleria division in February, is focusing on discovering and commercializing new premium VIP-related content.

The group is also taking steps to diversify channels such as e-commerce. Hanwha Solutions is preparing a luxury e-commerce platform as a wholly owned subsidiary. With consumers in their 20s and 30s, who are accustomed to online shopping, emerging as major players in the luxury market, the group plans to aggressively target this market but intends to approach it under a new brand without the Hanwha name. A Hanwha Solutions official explained, "This business is currently operated independently from the Galleria division." However, the industry expects Executive Director Kim to play a key role in expanding synergy effects among the group’s luxury distribution channels, including department stores and e-commerce.

Recently, Galleria also entered the bidding for the IFC, a landmark building in Yeouido, Seoul. They are negotiating to take on the role of asset management company (PM) within the Mirae Asset consortium. By participating as the operator of the IFC Mall, Galleria plans to upgrade the mall’s luxury positioning based on its brand attraction capabilities. The industry anticipates that if this plan materializes, it will become a major new business for the Galleria division under Executive Director Kim’s guidance.

Executive Director Kim also oversees new businesses as Head of Future Strategy at Hanwha Hotels & Resorts. The company is focusing on developing the Seorak complex project targeted for completion in 2024. When Hanwha Next, a spin-off from the equestrian business division (Premium Leisure Business Division), launches next month, Executive Director Kim will also oversee new businesses in that division, holding concurrent positions across the three companies.

Industry insiders predict that with Executive Director Kim strengthening the group’s new distribution businesses overall, the succession process within Hanwha Group will accelerate. The group is proceeding with management succession by handing over core businesses such as petrochemicals and solar energy to Kim Dong-gwan, the eldest son and President of Hanwha Solutions; financial businesses to Kim Dong-won, the second son and Vice President of Hanwha Life; and distribution, hotel, and leisure businesses to Executive Director Kim. An industry official commented, "Since the distribution, hotel, and leisure sectors are facing major changes in the post-COVID-19 era, Executive Director Kim’s role is crucial."

This content was produced with the assistance of AI translation services.