Hyundai Home Shopping spins off investment unit ahead of planned merger

Hyundai Home Shopping said it will spin off its investment division, creating a new company expected to merge with Hyundai GF Holdings and separating the investment business from its home-shopping operations.

The board resolved to separate the investment division, following an earlier review that the company disclosed in May. In that May disclosure, Hyundai Home Shopping said it was considering a personal split but that no decision had been finalized.

The new entity will use Hyundai Home Shopping Holdings as a provisional name and is designated for the planned merger with Hyundai GF Holdings. Hyundai Home Shopping sets Dec. 15 as the split date, with a shareholder meeting to approve the plan scheduled for Nov. 12.

The plan keeps Hyundai Home Shopping as the surviving company, with a separate new entity created for the investment business.

Hyundai Home Shopping said the restructuring is intended to give individual divisions greater independence and specialization, a structure it expects will ease investment in core businesses while distributing management risk and increasing the potential for continuous growth. Raising corporate value is the plan's stated final objective.

The existing Hyundai Home Shopping will retain the home-shopping division, encompassing TV and data home shopping, internet shopping malls and offline operations. The spin-off will create a separate company for the investment division.

The new company will manage and invest in shares of subsidiaries and investee companies. The filing identifies shares in Hanseom among the investment shareholdings assigned to the division.

Beyond its direct shopping operations, Hyundai Home Shopping runs subsidiaries in building materials, digital signage, IT services, bio materials and women's apparel.

Under the division plan, the surviving company's split ratio is 0.27, compared with 0.73 for the new company. The proposed transaction also calls for Hyundai Home Shopping to reduce capital by 72.6 percent.

Hyundai Home Shopping Holdings will have total assets and total capital of 1.23 trillion won ($858 million) each, according to the filing. The surviving company will have total assets of 697 billion won ($488 million) after the division.

The remaining home-shopping company is also set to carry total liabilities of 235 billion won ($165 million) and total capital of 461 billion won ($323 million). It generated revenue of 1.09 trillion won ($763 million) in its most recent business year.

On a standalone basis in the first quarter of 2026, Hyundai Home Shopping's total revenue increased 4.65 percent from a year earlier to 281.3 billion won, according to a regulatory disclosure. TV home-shopping revenue edged lower to 140.1 billion won, while internet-shopping revenue rose to 95.9 billion won.

On a consolidated continuing-operations basis, Hyundai Home Shopping reported first-quarter revenue of 978.5 billion won. Apparel manufacturing and wholesale-retail was the largest business segment at 410.3 billion won; building materials recorded 226.7 billion won and other telecommunications and chemical-products manufacturing 70.9 billion won.