Hanwha Accelerates Third-Generation Succession with Clearer Roles Among Chairman's Three Sons

Published Jul 31, 2026, 3:38 pm KST

Each heir takes a domain: defense, finance, and retail

Hanwha Group has nearly completed its succession transition from the second-generation owner family to the third generation, clarifying the responsibilities of Chairman Kim Seung-youn's three sons through a series of executive promotions and a sweeping corporate restructuring.

The overhaul places Hanwha among the last of South Korea's major family-owned conglomerates to formalize a third-generation leadership transition, a process peers such as Samsung, Lotte, and LG have navigated in recent years through similar combinations of share transfers, spin-offs, and executive reshuffles.

The high-level appointments, combined with a major corporate spin-off, signal a shift toward a "responsibility-based management" model in which the three Kim brothers set strategic direction while seasoned professional executives handle day-to-day execution.

Corporate spin-off forms the foundation

The cornerstone of the overhaul is the vertical split of Hanwha Corp. into two separate entities. The surviving company will focus on defense, shipbuilding, energy, and finance. A newly created company, Hanwha Machinery & Service Holdings (Hanwha M&S), will cover machinery, robotics, semiconductor equipment, retail, leisure, and food services.

The asset split ratio stands at approximately 76 percent for the surviving entity and 24 percent for the new one. Both companies are set to relist on Aug. 25.

Eldest son Kim Dong-kwan leads core industrial pillars

Kim Dong-kwan, the eldest son, has been promoted from vice chairman to executive vice chairman — the only executive in the entire group to hold that title — reinforcing his position as the de facto leader of the group's core industrial businesses.

His elevation comes as South Korea's defense exports have grown sharply in recent years, with Hanwha Aerospace emerging as a key supplier of artillery systems, guided munitions, and armored vehicles to NATO and Indo-Pacific customers.

He retains a 50 percent stake in Hanwha Energy, the largest shareholder of Hanwha Corp. His portfolio includes driving mid- to long-term strategy, global expansion, and large-scale investment projects across defense, shipbuilding, space aerospace, and energy.

Second son Kim Dong-won heads financial arm

Kim Dong-won, the second son, has been elevated from president of Hanwha Life Insurance to vice chairman of the group, where he will represent the group's financial arm.

While he already leads Hanwha Life as chief global officer, his expanded remit now covers groupwide financial strategy across Hanwha Life Insurance, Hanwha General Insurance, Hanwha Investment & Securities, and Hanwha Asset Management.

Notably, the finance business remains within the surviving entity for now, with full ownership separation viewed as a longer-term option following value creation.

Third son Kim Dong-seon takes charge of tech-life convergence

Kim Dong-seon, the third son, who previously served as vice president of Hanwha Vision, has been appointed president of the newly formed Hanwha M&S.

His responsibilities encompass retail, leisure, food and beverage, machinery, robotics, and semiconductor equipment. His portfolio includes Hanwha Vision, Hanwha Semitec, Hanwha Robotics, Hanwha Galleria, Hanwha Hotels & Resorts, and Ourhome — marking a clean separation from the core industrial complex and positioning him to lead the group's "tech-life" convergence strategy.

Governance adjustments pave the way

The personnel changes follow a year-long series of Hanwha's governance adjustments. In March 2025, Chairman Kim gifted 11.32 percent of his 22.65 percent Hanwha Corp. stake to his three sons. This was followed by Hanwha Energy's share reshuffle and Hanwha Corp.'s spin-off approvals.

Such gift-and-split combinations have become a common tool among Korean chaebol families seeking to transfer control while managing inheritance tax liabilities and minimizing disruption to listed subsidiaries.

With shareholders voting on July 15 to approve the split, the group has now aligned ownership, organizational structure, and leadership under the third generation.

Industry observers see a "division of responsibility" model

Industry observers characterize the new structure as a "division of responsibility" model, in which the three brothers establish strategic direction for their respective domains while professional CEOs execute detailed plans, particularly in overseas markets and next-generation technologies.

"For Kim Dong-kwan, this means consolidating Hanwha's land-sea-air-space defense ecosystem and advancing solar, hydrogen, and artificial intelligence (AI)-related investments," an industry official said. "For Kim Dong-won, the focus is on Southeast Asian insurance markets and global financial partnerships. For Kim Dong-seon, it is expanding 'physical AI' applications in food, retail, and leisure while building semiconductor equipment and robotics capabilities."

Another industry official commented: "With share and organizational restructuring largely complete, Hanwha has entered the third-generation management. The test ahead is whether the brothers' clear accountability, combined with expert execution, can generate synergies across defense, finance, and tech-life businesses."

Professional executives appointed to key CEO roles

Alongside the heirs' promotions, Hanwha has placed experienced operators in key CEO positions, which will be formally finalized at the respective companies' shareholders' meetings.

Lee Boo-hwan, formerly head of Hanwha Aerospace's European subsidiary and its precision-guided-munition business unit, has been nominated CEO of the company's business division, where he will lead ground weapons research and development as well as overseas defense exports.

Yang Ki-won, previously head of Hanwha Corp.'s global division and Hanwha Impact's business unit, has been nominated CEO of Hanwha Systems to expand defense electronics and space ventures in international markets.

Kang Jung-hoon, currently head of Hanwha TotalEnergies' Daesan plant in Seosan, South Chungcheong Province, has been tapped to lead Hanwha Impact's business division, leveraging his petrochemical expertise to improve cost competitiveness and profitability.

Im Dong-jun, a former head of Hanwha Asset Management's U.S. subsidiary and its strategic business unit, has been nominated to lead the Korean asset management firm.

Kim Ki-chul, currently CEO of Hanwha Vision, has been nominated CEO of Hanwha Semitec.

Source: The Korea Times