This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:44 p.m. on Aug. 11, 2026.
The sale of FG Korea, operator of Five Guys under Hanwha Galleria, has entered the final stage of confirmatory due diligence. The market initially expected a stock purchase agreement (SPA) to be signed this month, but the timeline was delayed as due diligence and talks with Five Guys' U.S. headquarters took time. Hanwha Galleria and buyer H&Q Korea are negotiating with the goal of signing the definitive agreement before the Chuseok holiday next month.
According to the investment banking (IB) industry on the 11th, H&Q is currently conducting confirmatory due diligence on FG Korea and plans to wrap it up around midmonth. The two sides plan to continue negotiations to determine corporate value and specific transaction terms based on the due diligence results. So far, key terms, including the final purchase price, have not been decided.
Earlier, the market expected H&Q to complete confirmatory due diligence by midmonth, set the valuation and transaction price within the month, and even sign the SPA. However, the schedule overlapped with the summer vacation season, taking longer than expected, and the timing for signing the definitive agreement is likely to slip to next month.
However, the delay does not mean the sale is facing difficulties, according to reports. Over the past one to two months, confirmatory due diligence and talks on transaction terms have made considerable progress, and both sides are said to be intent on closing the transaction. As of now, signing the SPA before the Chuseok holiday appears likely.
Hanwha Galleria selected H&Q as the preferred bidder to acquire Five Guys in Dec. 2025. The two sides signed a memorandum of understanding (MOU) at the time and re-signed it in June after the original MOU expired.
One reason this transaction is taking time is that FG Korea is not a typical domestic dining company but a company that operates its business under a franchise agreement with Five Guys' U.S. headquarters. Even if control transfers to H&Q, the existing franchise relationship regarding brand use must be maintained, meaning there are many matters that require consultation with the U.S. headquarters.
Work also remains to finalize the corporate value and the final transaction price. H&Q is said to be reassessing the valuation based on confirmatory due diligence of FG Korea's first-half performance this year and future store-opening plans. In the early stage of the sale, a price tag of around 70 billion won was mentioned in the market, but the transaction price has not yet been set, according to both sides.
FG Korea's revenue last year came to 53.84 billion won, up 15.7% from 46.51 billion won in 2024. But operating profit fell 69.8% to 1.02 billion won from 3.37 billion won in 2024. Separate from last year's weaker earnings, this year's first-half performance is also expected to have a significant impact on the transaction price.
The asset for sale is FG Korea, in which Hanwha Galleria holds a 100% equity stake. FG Korea operates the domestic business of the U.S. hamburger brand Five Guys. Hanwha Galleria opened Korea's first Five Guys store in Seoul's Gangnam in June 2023 and has since expanded its locations. FG Korea also established a local entity, "FG Japan G.K.," last year to enter the Japanese market. The value of entering Japan is also reflected in the sale price.