Harim splits real estate and food units, creating new Harim Food subsidiary

Harim Industry, a wholly owned subsidiary of Harim, said Monday it would separate its real estate development and food businesses into distinct operations. The company disclosed that its board of directors voted to approve a horizontal split of the two business units.

The split will divide Harim Industry into two entities: a surviving company retaining the Harim Industry name to focus exclusively on real estate development, and a newly established company called Harim Food to carry on the food business. The surviving Harim Industry will concentrate on the Yangjae Urban Advanced Logistics Complex project, a key urban logistics infrastructure initiative in Seoul. Harim Food will take over food manufacturing and processing, food ingredient distribution and food logistics operations.

After the split, Harim will continue to hold 100 percent stakes in both the surviving and newly established companies, maintaining a horizontal ownership structure. The restructuring will therefore leave no change in Harim's governance or shareholder ownership ratios, and will have no impact on the parent company's ownership stake, consolidated earnings or asset structure. The split is set to be finalized on Dec. 1, following a shareholder vote at the subsidiary on Sunday.