[Edaily Reporter kim mi-kyung ] #Harim Industries, a wholly-owned subsidiary of Harim Holdings Co., Ltd., is moving forward with a spin-off to separate its real estate development and food business divisions. This move is seen as a strategic gambit to accelerate its core project—the Yangjae Urban High-Tech Logistics Complex—and strengthen expertise in the food sector.

On the 26th, HARIM Co., Ltd. held a board of directors meeting, approved a proposal for a horizontal spin-off by business division, and disclosed the decision. Through this spin-off, the existing HARIM Co., Ltd. will be split into the surviving entity “HARIM Co., Ltd.,” which will focus on real estate development, and the newly established entity “HARIM Foods,” which will handle the food business.

The surviving entity, HARIM Co., Ltd., will focus on the urban high-tech logistics complex project currently underway in Yangjae-dong, Seocho-gu, Seoul. The newly established HARIM Foods will be responsible for food manufacturing and processing, as well as food ingredient distribution and food logistics.

Even after the split, the parent company, Harim Holdings Co., Ltd., will maintain a horizontal structure in which it holds 100% of the shares in both HARIM Industries and HARIM Foods. Harim Holdings Co., Ltd. stated, “This split will not result in any changes to the corporate governance structure or shareholder ownership ratios, nor will it affect the performance or asset structure reflected in the consolidated financial statements.”

Meanwhile, the spin-off process for HARIM Co., Ltd. is scheduled to be finalized on December 1, the effective date of the spin-off, following a resolution at the subsidiary’s shareholders’ meeting on the 27th.