This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:21 p.m. on Jul. 10, 2026.
Hanwha Galleria(452260) led by Kim Dong-Sun, executive vice president overseeing future vision at Hanwha Vision, secured a prime site in Seoul's Gangnam and kicked off its asset development business in earnest. Observers said the company is accelerating efforts to diversify its distribution-centered business portfolio as it has recently bought a series of major properties in Seoul and now even acquired a development site located on a "golden" plot in Gangnam.
According to the investment banking (IB) industry on the 10th, Hanwha Galleria was selected as the final acquirer after bidding 236.7 billion won in a court sale for a development site in Sinsa-dong, Gangnam-gu, Seoul, conducted recently by Hana Asset Trust. The appraised value of the site was 249,654,600,000 won, and after three failed attempts, it was sold at a price about 13 billion won below appraisal. A major domestic construction company also participated in the tender, but Hanwha Galleria reportedly offered a higher price.
The site secured this time was used by POSCO E&C as the housing culture center "The Sharp Gallery." Later, developer RBDK pursued an ultra-luxury residential project called "The Peak Dosan." The plan was to build a high-end residential facility with 26 units, from five basement levels to 20 stories above ground, at a location with permanent views of Dosan Park. It drew attention as a flagship luxury development in Gangnam, with per-unit prices rumored to reach hundreds of billions of won, but the project eventually entered court sale procedures as the bridge loan deteriorated due to a crunch in the real estate project financing (PF) market and rising construction costs.
The investment is seen as an extension of Hanwha Galleria's recent real estate strategy. Since last year, the company has successively acquired properties in prime locations such as Sinsa-dong, Cheongdam-dong, and Seogyo-dong in Seoul, and more recently it purchased the Soonhwa Building in Jung-gu, Seoul, for 213.4 billion won.
While previous investments focused on securing income-generating assets that produce rental revenue, this time the company obtained a large site suitable for direct development, marking a shift in character. Industry watchers say the company is speeding up the establishment of a developer model that goes beyond simple asset purchases to directly carry out development and operations.
Lending weight to this analysis is a recent organizational reshuffle. Hanwha Galleria has created a dedicated development unit and is hiring specialists, accelerating efforts to strengthen development capabilities. The move is seen as an attempt to foster mixed-use development and premium lifestyle businesses as new growth pillars beyond its traditional department store-centered distribution operations. The market also expects that the newly secured site is more likely to be used as a core base for a mixed-use development project rather than held simply for ownership.
However, as the aggressive investment stance continues, future fundraising is cited as a key task. The combined acquisition price for the Soonhwa Building and The Peak Dosan site alone is about 450 billion won, and once development shifts into full gear, substantial additional funds are expected to be needed for construction and financing costs beyond land purchase costs. Given that it will be difficult to cover project costs solely with internal funds, the industry sees a combination of bank borrowing, project financing (PF), and attracting financial investors (FI) as a likely approach.
The investment is also seen as aligning with Executive Vice President Kim's push to establish an independent management system. Hanwha Group plans to launch a new holding company, "Hanwha Machinery & Service Holdings," on the 1st of next month through a spin-off. Under the new holding company will be tech affiliates such as Hanwha Vision, Hanwha Momentum, Hanwha Semitek, and Hanwha Robotics, along with lifestyle affiliates such as Hanwha Galleria, Hanwha Hotels & Resorts, and OURHOME. As the business domains overseen by Kim are reorganized under a single holding structure, the industry expects the lifestyle strategy that organically combines distribution, hotels, food and beverage (F&B), and asset development to gain further momentum.