Hanwha Solutions Minority Shareholders Urge Stake Sale in Korea Zinc to Replace KRW 1.8 Trillion Rights Issue

Hanwha Solutions Minority Shareholders Urge Stake Sale in Korea Zinc to Replace KRW 1.8 Trillion Rights Issue: Reporter Paul Lee / approved : 2026-05-20 06:04:22

Hanwha Solutions. (Photo: Hanwha Solutions)

[Alpha Biz= Paul Lee] Minority shareholders of Hanwha Solutions have called on the company to reconsider its planned KRW 1.8 trillion capital increase, urging instead the sale or monetization of shares in Korea Zinc held by affiliates.

According to shareholder activism platform ACT on May 19, a shareholder representative argued that Hanwha Impact—in which Hanwha Solutions holds a 47.93% stake—owns a 1.88% stake in Korea Zinc, while its North American subsidiary holds an additional 5%. Based on recent market prices, the combined stake is valued at approximately KRW 1.96 trillion.

The shareholder suggested that the company could utilize proceeds from a potential stake sale for shareholder returns, such as special dividends, share buybacks, or intra-group transactions, instead of pursuing a large-scale rights offering.

Hanwha Solutions has proposed alternative measures, including partial divestment of its stake in Hanwha Impact and potential monetization of shares in Hanwha Hotels & Resorts, targeting around KRW 300 billion in asset sales or liquidity 확보 by the third quarter. However, shareholders argue that disposing of the Korea Zinc stake would be a more effective solution.

The shareholder representative also raised suspicions that the Korea Zinc stake may serve as a “white knight” holding aligned with Chairman Choi Yoon-bum, questioning whether the company is unwilling—or unable—to sell the shares.

The debate comes as the Financial Supervisory Service has twice rejected Hanwha Solutions’ securities registration filing for the rights issue. The company recently revised its timeline, pushing back key dates including the pricing and listing schedule for new shares.

Shareholders emphasized that if the Korea Zinc stake can be liquidated, the scale of the rights offering could be significantly reduced or even withdrawn, and called on the company to clearly explain its position if divestment is not feasible.

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)

https://www.alphabiz.co.kr/news/view/1065618269933949
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.