Hyundai GF Holdings plans merger with investment spin-off

Hyundai GF Holdings plans to merge with a newly created investment company after its subsidiary Hyundai Home Shopping separates the unit that manages its investment holdings.

Hyundai Home Shopping will remain as the continuing company, retaining the home-shopping division after the split. The business to be removed is the investment operation that manages investment shares. It will be established as a separate company whose principal activities will be managing and investing in stakes in subsidiaries and investee companies.

The new investment company, not the business that remains at Hyundai Home Shopping, is scheduled to merge with Hyundai GF Holdings.

The timetable sets Nov. 12 for a shareholder meeting and Dec. 15 as the effective date for the corporate split. Hyundai Home Shopping said the purpose of the planned transaction is to improve business specialisation and reinforce competitiveness.

Under the disclosed terms for the two businesses, the continuing company will have a split ratio of 0.27, while the new investment company's ratio will be 0.73. The transaction also includes a 72.6 percent capital reduction at Hyundai Home Shopping.

The new investment company will have total assets of 1.23 trillion won ($858 million) and total equity of the same amount. It will have capital of 40.7 billion won ($28.5 million).

Following the division, the continuing company will have total assets of 697 billion won ($488 million), total liabilities of 235 billion won ($165 million) and total equity of 461 billion won ($323 million). Its capital will stand at 19.3 billion won ($13.5 million). These are the figures assigned to the company that will retain home shopping, not to the company scheduled to merge with Hyundai GF Holdings.

The home-shopping company had revenue of 1.09 trillion won ($763 million) in its most recent business year.

Hyundai GF Holdings had previously decided in February 2026 to carry out a comprehensive share exchange with Hyundai Home Shopping. It also disclosed a securities registration statement related to that decision. The share exchange was a preceding step in the governance restructuring.

Hyundai GF Holdings' apparel manufacturing and wholesale-retail business was the group's largest business segment by revenue in the first quarter of 2026, according to a past disclosure. The current plan identifies the stake in Handsome among the investment shares managed by the unit slated for separation.