This article was published on May 26, 2025, at 3:22 p.m. on the ChosunBiz MoneyMove site.
Hansol Group is reviewing the sale of its smart factory corporation, Hansol Coever. Since 2020, Hansol Group has acquired several corporations to diversify its revenue, but it appears that it has decided to restructure non-core affiliates that are not generating performance.
Founded in 1993 after separating from Samsung Group and classified as part of the broader Samsung family, Hansol Group is currently establishing a management system with its chairman, Cho Dong-gil, along with his son and son-in-law. Chairman Cho is the third son of the late Lee Byung-chul, the founder of Samsung, and Lee In-hee, a former adviser to Hansol Group, and he assumed the position of chairman of Hansol Group in 2002 after Lee In-hee.
According to the investment banking (IB) industry on the 26th, Hansol Group is said to be sorting through its subsidiaries under its holding company, Hansol Holdings, to identify assets suitable for sale. In addition to Hansol Coever, it has been reported that 2 to 3 other corporations, including subsidiary companies, are already considered as sale candidates.
Chairman Cho Dong-gil of Hansol Group expressed his commitment to business diversification through his New Year's address in 2020. Through major subsidiaries, he acquired Taeyun Express (currently Hansol TCS) in the same year, as well as Coever Information Technology (currently Hansol Coever), Stickers Corporation (a pet healthcare company) the following year, and Seongwoo Envitech (currently Hansol Eco Packaging) in 2022.
In the case of Hansol Coever, it is a subsidiary of Hansol PNS, a specialized distribution company for printing paper. Hansol PNS holds a 53% equity stake. The book value of Hansol Coever, evaluated by Hansol PNS, was 7.377 billion won as of the end of the first quarter of this year.
An IB industry source noted, "Since the group pushed for business diversification, the individual subsidiaries have actively sought new business through mergers and acquisitions (M&A)," and added, "Currently, they are in the stage of selling off underperforming areas, and they would likely want to at least secure the book value."
Hansol Coever recorded a net loss of 81 million won last year, returning to the red, with sales amounting to 8.3 billion won, down 17.2% compared to the previous year. In the first quarter of this year, it also recorded a net loss of 467 million won, continuing its poor performance.
Overall, the subsidiaries of Hansol Group recorded poor performance last year. Hansol Paper Tech, which is subject to consolidation, saw its operating loss widen, and Hansol Logistics reported a 36% decrease in operating profit compared to the previous year. Major subsidiaries, Hansol Paper and Hansol Technics, which are accounted for using the equity method, experienced decreases in operating profit of 41% and 32%, respectively.
Due to poor performance, the net income of Hansol Holdings also decreased. The net income, which had maintained at around 10 billion won, recorded 5 billion won the year before last and 1.6 billion won last year, showing a downward trend. This is influenced by the increased equity method losses from the worsening management of its subsidiaries.
Last year, the equity method loss of Hansol Holdings was 10.1 billion won, including losses of 9.3 billion won from Hansol Paper, 4 billion won from Hansol HomeDeco, and 1 billion won from Hansol Inticube. Hansol Technics and Hansol Logistics managed to reduce their losses.
Through its holding company Hansol Holdings, Hansol Group controls ▲Hansol Paper ▲Hansol Paper Tech ▲Hansol HomeDeco ▲Hansol Technics ▲Hansol PNS ▲Hansol Inticube. Chairman Cho is the largest shareholder with a 17.23% equity stake, while his son, Cho Sung-min, the vice president of Hansol Holdings, holds a 4% equity stake.
A source from Hansol Group replied, "We are focusing on management efficiency, but we are not considering the sale of subsidiaries."