Hansol Group, Only the 'Samsung Business' Endured While All Other Ventures Receded

Beom Samsung Family Hansol's Last Year's Performance Down 79%
Poor Performance of Core Business Hansol Paper Impacted Results
Only Hansol Technics, a Samsung Client, Performed Well

Hansol Group saw a significant decline in the performance of most of its affiliates last year, including its main subsidiary Hansol Paper. However, its business related to Samsung successfully defended its performance. Hansol is a "pro-Samsung family" company.

On the 14th, Hansol Holdings announced that its operating profit last year was approximately 4 billion KRW, a 79.1% decrease compared to the previous year. During the same period, net profit also fell sharply by 89.7% to 5.1 billion KRW, barely avoiding a loss. The overall performance of the group’s affiliates deteriorated.

Hansol Group oversees more than 10 subsidiaries, including Hansol Paper, Hansol Technics, Hansol Chemical, Hansol Papertech, and Hansol PNS. In particular, the operating profit of the core affiliate Hansol Paper significantly decreased by 63.7% year-on-year due to the downturn in the industry.

Among the affiliates showing poor performance, with some turning to losses, the best at defending its results was Hansol Technics. This company focuses on the smartphone contract manufacturing (EMS) business, with Samsung Electronics as its key client. Samsung Electronics assembles premium smartphones in-house but outsources the mid-to-low-end lines. Hansol Technics mainly handles the final assembly of mid-to-low-end models such as the Galaxy A series.

Looking at Hansol Technics’ business segment performance last year, only the business related to Samsung Electronics showed growth. The power board division, which manufactures devices that supply power to electronic products, recorded sales of 614.6 billion KRW last year, showing slight growth compared to the previous year. During the same period, the smartphone EMS division posted sales of 337.2 billion KRW, improving its performance year-on-year.

Since only the Samsung Electronics-related business defended its performance among all business segments, Hansol Group is still regarded as unable to shed the "pro-Samsung family" label. Hansol Group is managed by the sons of the late Lee In-hee, a Hansol Group advisor and eldest daughter of the late Samsung founder Lee Byung-chul. The eldest son, Chairman Cho Dong-hyuk, leads Hansol Chemical, while the third son, Chairman Cho Dong-gil, heads the holding company Hansol Holdings.

Meanwhile, Hansol Group plans to focus on strengthening profitability and discovering new businesses this year. First, Hansol Holdings will hold its regular shareholders’ meeting on the 27th and appoint President Lee Myung-gil as a new inside director. The newly appointed CEO Lee Myung-gil is highly regarded for his deep understanding of the group’s affiliates and his expertise in finance, demonstrating excellent crisis management capabilities.

Hansol Paper plans to enhance profitability by expanding sales in high-margin markets such as the United States and diversify its thermal paper products (used for receipts, tickets, and lottery tickets) to solidify its market position as an eco-friendly comprehensive label paper company.

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