Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] SEOUL, April 10, 2026 — Financial Supervisory Service (FSS) has ordered Hanwha Solutions to revise its securities registration statement for a planned 2.4 trillion won ($1.8 billion) rights offering, casting uncertainty over the deal’s future.

According to regulatory filings, the FSS requested a revised filing one day after designating the capital increase for intensive review. The regulator said the document may contain unclear or insufficient disclosures that could hinder investors’ decision-making or lead to misunderstandings.

The move does not immediately halt the capital raise. Hanwha Solutions has up to three months to submit a revised filing, after which the FSS will conduct a re-evaluation. Failure to meet the deadline would result in automatic withdrawal of the plan.

While the regulator did not disclose specific reasons, market participants speculate that concerns may extend beyond technical disclosure issues to the fundamental rationale of the capital increase — potentially leading to a reduction in size or structural changes.

The situation mirrors last year’s case involving Hanwha Aerospace, where a 3.6 trillion won rights issue was scaled back after two rounds of FSS revision requests and shareholder backlash.

Investor opposition is also intensifying. Minority shareholders, organized through a shareholder activism platform, have surpassed the 3% ownership threshold required to call an extraordinary general meeting and are preparing to submit proxy votes.

Critics argue that more than 60% of the planned proceeds — 1.5 trillion won — will be used to repay debt, effectively shifting the burden of financial restructuring onto shareholders. They have also raised concerns over insufficient communication, noting that the capital increase was announced shortly after a shareholders’ meeting approved an increase in the company’s authorized share issuance limit.

The FSS also recently denied Hanwha Solutions’ claim of prior consultation with the regulator regarding the deal, further fueling controversy.

Market attention is now focused on whether Hanwha Solutions will revise its plan to address regulatory concerns and investor backlash, or opt to restructure or scale down the offering.

 

 

 

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