Hanwha Group (Korean: 한화그룹; Hanja: 韓火그룹; RR: Hanhwa Geurup) is a large business conglomerate (chaebol) in South Korea.[2] Founded in 1952 as Korea Explosives Co. (한국화약주식회사; 韓國火藥株式會社), the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives—their original business—to energy, materials, aerospace, mechatronics, finance, retail, and lifestyle services. In 1992, the company adopted its abbreviation as its new name: "Hanwha".
History
1952–1999
Kim Chong-hee founded Korea Explosives Co. in October 1952. Prior to founding the company, Kim worked as a gunpowder engineer for the "Chosun Explosives Factory", a Japanese company. Later, he won the bid for the company and its Incheon factory and started the company there.[3][4]
From 1952 to 1963, the Korea Explosives Co. produced industrial explosives domestically, which was needed for construction and engineering of infrastructure. In the same time period, the Korea Explosives Co. started producing nitroglycerin, which gave it a monopoly in the field of explosives and gunpowder.[3] In 1959, the Hanwha group started producing domestic dynamite.[4]
From 1964 to 1980 the Hanwha group started to make investments in various fields, starting the foundation of it becoming a chaebol. Later in the mid 1960s, Korea Hwasung industrial Co. was founded (now Hanwha Solutions), and entered the petrochemical market. Hanwha increased its competitiveness in the machinery market by acquiring Shinhan Bearing Industrial.[3] Hanwha founded Kyung-in Energy in 1969, and the Hankook Precision Tools (now Hanwha Corporation/Momentum) followed suit, being founded in 1971.[3]
From 1981 to 1995, Kim Seung-youn became the second chairman of the company, and more investments in diverse markets were initiated. It expanded further into the chemical industry by acquiring both Hanyang Chemicals (now also Hanwha Solutions) and Dow Chemicals Korea in 1982, expanded into the resorts industry by acquiring the Junga group (now Hanwha Hotels & Resorts) in 1985, and expanded into the leisure and distribution industry by acquiring Hanyang Stores (now Hanwha Galleria) in 1986.[3] In the 1990s, the Hanwha Group founded Hanwha BASF Urethane, Hanwha NSK Precision, Hanwha GKN, Hanwha Machinery Hub Eye Bearings, SKF Hanwha Auto Parts, and Hanwha Motors. In 1992, the Korea Explosives Co. changed its name to Hanwha, and Binggrae was separated and made independent from the company.[3]
In 2002, Hanwha expanded into the life insurance industry by acquiring Korea Life Insurance. From 2007–present, Hanwha is undergoing global expansion. Hanwha acquired Azdel, an American company in 2007 and established a PVC plant in Ningbo, Zhejiang, China in 2011.[3]Hanwha Q CELLS was launched in 2012. In 2014, Hanwha acquired Samsung Techwin, Samsung Thales, and Samsung Total.[3] Since 2019, Hanwha is operating the largest solar module plant (1.7 GW) in the United States; It is located in Dalton, Georgia.[5] As of 2019, Hanwha has a total of 466 affiliates, 84 being domestic and 382 overseas.[3] Hanwha completed its take over of Daewoo Shipbuilding & Marine Engineering (DSME), renaming it Hanwha Ocean in 2023.[6]
Controversy
In 2011, Kim Seung-yeon, the current chairman of the Hanwha Group, was fined 5.1 billion KRW and was jailed for 4 years on charges of embezzlement and breach of trust.[7][2]
In a meeting held on May 21, 2022, Kim Dong-kwan, the president of Hanwha Solutions, laid down a plan to spend 36.7 trillion KRW on its energy and aerospace sectors.[8] He said he wanted to commit the company to solar energy to reduce its carbon footprint and supply high quality energy. Additionally, he announced plans to build another modular factory in the United States.[5] In order to tackle the problem of stagnating bee populations, Hanwha has created a solar beehive, that helps to protect and maintain a stable bee population.[9] Hanwha QCELLS has launched a new brand that ventures into the electric vehicle charging market called Hanwha Motiev in 2022.[10]
Wind Energy
Hanwha operates in the onshore and offshore wind power generation sectors, with a focus on Europe through its subsidiary Q Energy, as well as the domestic market.[11]
Hydrogen
Hanwha develops a hydrogen value chain, which includes production, utilization, and storage solutions[buzzword], utilizing renewable energy sources. Hanwha acquired Thomassen Energy/PSM in July 2021, which enables retrofitting of gas turbines for hydrogen use.[12]
Materials
Hanwha Solutions produces basic petrochemical products, such as PVC (Polyvinyl Chloride), LLDPE (Linear Low-Density Polyethylene), CA (Caustic Soda), ASR (Alkali Water Soluble Resin), and TDI (Toluene Diisocyanate), as well as working on eco-friendly technologies including low-impact plasticizers.[13]
Aerospace
Space
Hanwha is also extensively investing in the space market, and jointly established "Space Research Center" with KAIST. Hanwha Aerospace contributes to South Korea's space industry, including satellite observation services and the development of the Nuri space launch vehicle. Hanwha took an 8.8% stake in British company OneWeb, a satellite communication service provider as of 2022.[14]
Aircraft Engine
Hanwha Aerospace is South Korea's sole aircraft engine producer, partnering with global aviation engine companies for component manufacturing.[15]
Urban Air Mobility (UAM)
Hanwha Systems collaborates with Overair, a U.S. eVTOL startup, to develop the ‘Butterfly’ personal air vehicle.[16]
Vision Solutions
Hanwha Vision (formerly Samsung Techwin, before getting acquired by Hanwha) delivers video surveillance solutions with a focus on optics design, image processing, and AI-based platforms to improve service offerings.[17]
Finance
Hanwha operates in the financial industry, providing insurance, securities, and asset-management services, and investing in technology-based financial solutions.[buzzword][citation needed]
Retail & Services
Hanwha engages in retail & services such as department stores, hotels, and resorts, as well as developing large-scale complexes.[citation needed]
Affiliates
Hanwha Group's business area has five types, defence, technologies, energy, finance, and service.[18] On 23 May 2023, Hanwha acquires Daewoo Shipbuilding & Marine Engineering, and renamed Hanwha Ocean.[19]
