Harim Industry, a subsidiary of Harim Holdings, announced in a regulatory filing on the 26th that it has decided to spin off its food business division through a human split to establish a separate company.

Harim Industry to Handle Real Estate Development, Harim Foods to Handle Food Business

This split will separate the food business division from among the businesses operated by Harim Industry through a simple human split. After the split, the surviving company, Harim Industry, will operate the real estate development business division, while the newly established company, Harim Foods (provisional name), will operate the food business division.

The split ratio is 0.4619956 for the surviving company Harim Industry and 0.5380044 for the new company Harim Foods. This was calculated based on the book value of net assets on the financial position statement as of September 30, 2026.

After the Split, Harim Industry's Total Capital at 446.8 Billion Won, Harim Foods at 520.3 Billion Won

After the split, Harim Industry's total assets will be 1,828,135,528,532 won, total liabilities 1,381,331,222,950 won, and total capital 446,804,305,582 won. The new company Harim Foods is presented with total assets of 579,276,444,882 won, total liabilities of 58,962,656,973 won, and total capital of 520,313,787,909 won at the time of establishment.

Based on the 2025 separate financial statements, the revenue of each business division is 3 billion won for the surviving company and 106,367,984,210 won for the new company. These revenue figures were classified by Harim Industry for internal management accounting purposes.

Purpose of the Split: Enhancing Expertise and Strengthening Management Efficiency

Harim Industry cited enhancing the expertise of the real estate development and food business divisions and strengthening management efficiency as the purposes of the split. It also plans to pursue efficient resource allocation according to investment plans and funding needs by business division, as well as clarifying management performance and responsibilities.

Shareholders' Meeting on October 27... Split Date December 1

The shareholders' meeting regarding the split is scheduled for October 27, with the creditor objection period running from October 28 to November 30. The split date is December 1, and the scheduled split registration date is December 3. However, the split date may be changed by resolution of the board of directors.

Harim Foods Will Not Apply for Relisting

The newly established company Harim Foods will not apply for relisting, and Harim Industry will also not maintain its listing after the split. The company stated that there are no additional corporate restructuring plans under consideration at this time beyond this human split.