Hanwha Impact Sanctioned by Fair Trade Commission for Violating Holding Company Restrictions

Corrective Order and Fine of 166 Million Won Imposed

Hanwha Impact is set to face sanctions from the Fair Trade Commission for violating the regulation that prohibits holding shares in financial businesses by holding companies.

On August 26, the Fair Trade Commission announced its decision to impose a corrective order and a fine of 166 million won on Hanwha Impact for violating the restrictions on the activities of holding companies under the Monopoly Regulation and Fair Trade Act (Fair Trade Act).

Hanwha Impact is an investment-type holding company within Hanwha Group, with Hanwha Energy holding a 52.1% stake and Hanwha Solutions holding 47.9%.

According to the Fair Trade Commission, Hanwha Impact, as a general holding company, violated the restriction on holding company activities by owning approximately 6,672 million shares (a 39.92% stake) in Mangosteen No.1 Private Equity Limited Partnership, which operates a financial business, from June 2, 2023, to July 7 of last year.

Article 18, Paragraph 2, Item 5 of the Fair Trade Act prohibits general holding companies from owning shares in financial or insurance businesses.

The Fair Trade Commission stated, "This measure is significant in that it sanctions a violation of the restriction on holding company activities, which undermined the purpose of the holding company system under the Fair Trade Act, namely the formation of a simple, transparent, and sound ownership and governance structure."

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