Hanssem to Absorb Subsidiary 'Hanssem Nexus'... "Enhancing Management Efficiency and Premium Competitiveness"

Comprehensive home interior specialist Hanssem is restructuring its organization by absorbing its premium construction materials distribution subsidiary, Hanssem Nexus.

Hanssem announced on the 7th that it held a board of directors meeting and decided to absorb its 100% owned subsidiary, Hanssem Nexus. Because Hanssem owns all the shares of Hanssem Nexus, this merger will be conducted as a capital-free merger without the issuance of new shares. Following the merger, Hanssem will remain as the surviving entity, and the merged entity, Hanssem Nexus, will be dissolved.

Hanssem cited increasing management efficiency and strengthening corporate competitiveness as the main purposes of this merger. The plan is to create business synergy and secure future growth engines by integrating Hanssem's company-wide capabilities with the competitiveness that Hanssem Nexus has built in the premium market.

In particular, the company expects that by efficiently reallocating human and material resources, it will reduce unnecessary costs and have a positive impact on improving its financial structure and performance. Upon completion of the merger, the 121,220 common shares of Hanssem held by Hanssem Nexus will be succeeded as treasury shares of Hanssem.

This merger is being pursued in the form of a small-scale merger under the Commercial Act. Accordingly, the approval of the general meeting of shareholders will be replaced by a resolution of the board of directors, and no separate appraisal rights will be granted to Hanssem shareholders. However, if shareholders owning 20% or more of the total issued shares notify their opposition to the merger in writing within two weeks from the date of the public notice, the small-scale merger process cannot proceed.

The merger counterpart, Hanssem Nexus, is a company established in 1992 that has been engaged in the wholesale and retail of high-end kitchen furniture, home appliances, and lighting. As of the end of last year (2025), it recorded approximately 209.6 billion won in sales and 9.3 billion won in net income.

The future schedule includes a record date for determining shareholders on May 22, followed by a period for the submission of objections by creditors from June 9 to July 9. The merger date is July 31, and the merger registration is scheduled to be completed on August 3. Hanssem stated in its report that there are currently no confirmed details regarding any additional corporate structural reorganization being pursued or planned after the completion of the merger.