Hanwha sells Pangyo research lab to Hanwha Systems for 287.85 billion won

Hanwha disclosed Wednesday that its board met June 19 and approved the sale of the land and above-ground buildings of the Hanwha Future Technology Research Institute in Sampyeong-dong, Bundang-gu, Seongnam, Gyeonggi Province to Hanwha Systems for 287.85 billion won ($187 million). The contract is set to be signed June 26.

Completed in 2016, the research institute sits on a site of approximately 4,723 square meters, with a total floor area of 34,203 square meters across five below-ground and seven above-ground floors. The facility has hosted R&D in guided-weapons technologies — including laser systems, electro-optical sensors and image signal processing — as well as solar cell manufacturing equipment and process automation systems.

Hanwha said the transaction was aimed at "securing asset efficiency and financial soundness through the disposal of non-operating assets." Industry analysts say the move is also part of a broader effort to build cash liquidity ahead of the company's planned participation in a Hanwha Solutions rights offering. As the largest shareholder of Hanwha Solutions, Hanwha would need an estimated 520 billion won if it exercises a 120 percent oversubscription. The company is reportedly liquidating non-operating assets in succession, including pursuing the monetization of holdings such as the Courtyard by Marriott Suwon.

Hanwha Systems said it decided to purchase the facility to eliminate the constraints on large-scale equipment investment that came with leasing, remove the risk of sunk costs from relocating after lease expiration, and maximize workplace stability. The company said it ultimately settled on acquiring the Hanwha Future Technology Research Institute as it was the only property available for sale in the surrounding area.

Hanwha Systems currently leases both its Seohyeon office and its Pangyo research center. The Seohyeon lease is set to expire this year, while the Pangyo lease is due to end within a few years. Both sites are home to employees from the communications, ground systems, electro-optical and fundamental research institutes, as well as the electro-optical and space research institutes.

"This acquisition was pursued to stably secure long-term R&D infrastructure and consolidate our research and development capabilities," a Hanwha Systems official said. "We plan to leverage the infrastructure near Pangyo, where defense and ICT research centers are concentrated, to strengthen customer responsiveness and accelerate the recruitment of top research talent."