Kim Dong-seon, the head of Hanwha Machinery and Service Holdings (Hanwha M&S), is initiating a stock buyback using approximately 128.5 billion won of his personal funds. The move aims to maximize shareholder benefits by purchasing shares at a premium over market prices and to reinforce his commitment to responsible management.
According to Hanwha M&S, the buyback will take place over 22 days, starting today and ending on November 2, during which 16.06 million common shares will be repurchased. This represents about 19% of the total common shares.
The buyback price is set at 8,000 won per share, which is 27% higher than the average share price of approximately 6,300 won over the past month and a 32% premium compared to the closing price of 6,080 won on October 8. The company noted that this premium exceeds the average premium of previous buybacks conducted over the last five years.
Kim's investment of about 128.5 billion won will be entirely funded from his personal resources. The buyback process allows shareholders to sell their shares under the same conditions, serving as a protective measure for minority shareholders.
This decision reflects shareholders' concerns regarding recent stock price trends and the company's growth potential. During Hanwha M&S's first extraordinary general meeting last month, shareholders raised issues about the declining stock price and the need for future growth drivers. Kim aims to demonstrate his commitment to enhancing shareholder value through this buyback while also pursuing measures to strengthen responsible management in the future.
A Hanwha M&S representative stated, "There are aspects where the growth potential of the Tech & Life division of Hanwha Group has not been fully reflected in the stock price. We hope that Kim's buyback will serve as a positive signal to the market and shareholders, enhancing both shareholder and corporate value."
Hanwha M&S is a holding company that was established in August through the spin-off of Hanwha Group's Tech & Life division. It was listed on the stock market the same month, with Kim overseeing the long-term growth strategy of major affiliates as the head of future strategy.
The Tech division includes Hanwha Vision, Hanwha Semitec, Hanwha Momentum, and Hanwha Robotics, while the Life division comprises Hanwha Galleria, Hanwha Hotels & Resorts, and Ourhome. Including overseas subsidiaries, the total number of affiliated companies is 56. By the end of 2025, the consolidated revenue is expected to reach approximately 6 trillion won, with total assets of 11.3 trillion won.
* This article has been translated by AI.
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