Hyundai GF Holdings announced through a regulatory filing on the 5th that its subsidiary Hyundai Home Shopping will separate its investment business division through a simple and spin-off demerger method to establish a new holding company.

Overview of the Demerger Structure at a Glance

Hyundai Home Shopping will carve out the division managing investment shares, including its stake in Handsome Corp., to establish a new entity called 'Hyundai Home Shopping Holdings (tentative name).' Meanwhile, the surviving company, Hyundai Home Shopping, will continue its existing home shopping businesses, including TV and data home shopping, internet shopping malls, and offline operations.

The company explained that this demerger will enhance the expertise of both the home shopping and investment businesses independently while establishing an independent decision-making system. The goals also include focusing on core businesses and improving management efficiency. Additionally, the newly established company plans to merge with its parent company, Hyundai GF Holdings, after its launch. The company also expects benefits from unifying the decision-making structure of the investment company and discovering new business opportunities following the easing of behavioral restrictions on holding companies under the Monopoly Regulation and Fair Trade Act.

Shareholder Allocation and Financial Scale

The demerger ratio is 0.2736149 for the surviving company and 0.7263851 for the new company. Existing shareholders will be allocated shares of the new company in proportion to their ownership stakes as of the demerger record date, with fractional shares of less than one share to be paid in cash.

Following the demerger, the surviving company (Hyundai Home Shopping) will have total assets of 696.91956 billion won, total equity of 461.47895 billion won, and capital stock of 19.29409 billion won. The new company (Hyundai Home Shopping Holdings) will launch with total assets and total equity of 1.22512136 trillion won, respectively, and capital stock of 40.7518 billion won. The reference date for all figures is March 31, 2026.

Future Schedule

The demerger record date is December 15, 2026, and may be subject to change depending on the approval schedule of the Korea Communications Commission. This demerger plan will be finalized after approval at an extraordinary general meeting of shareholders scheduled for November 12, 2026, with the demerger registration scheduled for December 17, 2026.