Alphabiz - Regulator Halts Hanwha Solutions’ $1.8 Billion Rights Issue, Orders Filing Revision

Kim Seung-youn and Kim Dong-kwan observe a demonstration at the world’s largest commercial shared test tank at the Siheung R&D Campus of Hanwha Ocean. (Photo=Hanwha)

[Alpha Biz= Kim Jisun] SEOUL, April 9, 2026 — South Korea’s financial regulator has effectively put the brakes on Hanwha Solutions’ planned 2.4 trillion won ($1.8 billion) rights offering, ordering the company to revise its securities registration statement amid concerns over insufficient disclosures and potential investor confusion.

The Financial Supervisory Service (FSS) said on April 9 via the electronic disclosure system that it had requested Hanwha Solutions to submit a corrected filing. The decision came just 10 trading days after the company announced the capital increase plan and one day before the registration was set to take effect.

In its notice, the FSS stated that the filing contained “unclear or insufficiently disclosed material information that could hinder investors’ rational decision-making or cause significant misunderstanding.”

Hanwha Solutions had unveiled the 2.4 trillion won capital raise on March 26, with plans to allocate 900 billion won to next-generation solar technology investments and the remaining 1.5 trillion won toward debt repayment. The company argued that the move was unavoidable, citing limited room for further asset sales and the need to strengthen its capital base ahead of a scheduled credit rating review in late June.

However, the announcement triggered a sharp market reaction, with the company’s shares plunging 20.78% over two trading days. The planned issuance — amounting to more than 40% of existing shares — was structured as a shareholder allocation, requiring existing investors to either participate in the offering or face dilution of their holdings. Concerns were also raised over communication with shareholders, as the company moved forward with the capital increase shortly after expanding its authorized share issuance limit at a shareholders’ meeting.

In response, Hanwha Corporation, the group’s holding company, sought to reassure investors by pledging to fully subscribe to its allocated shares and additionally apply for up to 20% more through oversubscription. Kim Dong-kwan also announced plans to purchase 3 billion won worth of Hanwha Solutions shares, emphasizing a commitment to responsible management. Nevertheless, the regulator appears to have deemed these measures insufficient.

Retail investors are also mobilizing. Shareholders organized through a minority investor platform have reportedly secured a 3% stake, enabling them to call for an extraordinary general meeting. They aim to introduce cumulative voting and appoint board members representing minority shareholders. Some are also considering requesting a shift in the issuance structure to a third-party allotment that would place a greater financial burden on the controlling shareholder.

The situation echoes a previous case involving Hanwha Aerospace, which faced a similar regulatory intervention. In March last year, Hanwha Aerospace announced a 3.6 trillion won capital increase plan, triggering a 13% stock decline the following day amid dilution concerns. The FSS requested revisions twice, leading to a reduced issuance size of 2.3 trillion won, with the remaining 1.3 trillion won raised through a third-party allotment involving Hanwha affiliates.

Market participants are closely watching whether Hanwha Solutions will revise its plan to address regulatory concerns and investor backlash while securing the capital needed for its strategic initiatives.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)