Hanwha Hotels & Resorts Vice President Kim Dong-seon, the youngest son of Hanwha Group Chairman Kim Seung-youn, has recently made the acquisition of Korea’s second-largest food catering company a top priority. While some view the move as a strategic expansion of Hanwha’s food and beverage business, others question its feasibility.
At the company's board meeting on Feb. 11, Hanwha stated, "To enhance our F&B capabilities and generate synergies with our hospitality and lodging businesses, acquiring a controlling stake in Ourhome is necessary to secure new growth engines."
According to industry sources, Kim personally oversaw the due diligence process, inspecting Ourhome’s factories and logistics centers nationwide. He has also reportedly expedited the stock purchase agreement process and established a task force to manage post-acquisition integration.
"Previously, contract catering was largely confined to schools and hospitals in Korea. However, the sector has evolved, expanding into high-end facilities such as golf clubs, resorts and senior living communities. Additionally, given Korea’s demographic challenges, global expansion in this field presents significant opportunities," said a hospitality industry official.
Some industry experts believe the acquisition could help Hanwha shed its domestic-focused reputation and expand internationally.
Ourhome already has a significant global presence. In 2018, it acquired in-flight catering firm Hanil America Construction Realty from Hanjin Heavy Industries & Construction Holdings for $91 million, allowing it to supply airline meals in 10 countries, including Singapore, Japan and Turkey. In 2021, HACOR secured a contract to manage dining facilities for the US Postal Service.
Since joining Hanwha Galleria in 2022, Kim has actively expanded Hanwha’s F&B ventures, seeking international opportunities.
In 2023, he introduced the renowned US burger chain Five Guys to Korea, rapidly expanding it to key locations across Seoul. Additionally, he has pushed into food tech, rebranding Hanwha Hotels & Resorts’ restaurant subsidiary as Hanwha Food Tech and acquiring US-based robotic pizza company Stellar Pizza in March 2023.
"Kim is aggressively integrating AI-driven food technology, which could make Ourhome’s operations more efficient. Through synergies with Hanwha Robotics, the company aims to maximize its future food and leisure capabilities," another industry source said.
Despite these strategic advantages, a major hurdle remains: Hanwha’s financing strategy for the acquisition.
On Feb. 11, Hanwha Hotels & Resorts signed an SPA with former Ourhome Vice Chair Koo Bon-sung, the firm’s largest shareholder; Chair Koo Mi-hyeon, the Koo family’s eldest daughter; and two other related parties.
The agreement is for a 58.62% stake in Ourhome at a price of 869.5 billion won ($602 million).
However, with only approximately 130 billion won in cash reserves, Hanwha faces a significant funding gap. Private equity firm IMM Credit Solution is expected to invest 300 billion won, but the deal still falls short of the required acquisition funds.
Despite Ourhome’s record-breaking 2023 performance — 1.98 trillion won in revenue and 94.3 billion won in operating profit — industry experts remain skeptical about Hanwha Hotels & Resorts' ability to recover its investment.
The domestic contract catering and food distribution market is highly competitive, with major conglomerates such as Samsung, Hyundai, CJ and Shinsegae dominating the sector through their own catering subsidiaries.
hykim@heraldcorp.com
