Harim Industries will split its real estate development and food businesses into separate companies. Harim Industries, a wholly owned unit of Harim Holdings, held a board meeting on Oct. 26 and approved a horizontal spin-off by business division, it disclosed. A horizontal spin-off is a structure in which shareholders of the existing company receive shares in the surviving and newly established companies in the same proportion.

After the split, the surviving company, Harim Industries, will only handle real estate development. The food business will be transferred to a new company, Harim Foods. Harim Foods will cover food manufacturing and processing, food ingredient distribution and food logistics.

The surviving Harim Industries will focus its capabilities on the Yangjae Urban Advanced Logistics Complex project, seen as essential living logistics infrastructure in Seoul. The company said the project is set to move into full-scale 추진.

Harim Holdings will continue to hold 100 percent stakes in both the surviving company and the new company after the split. That means a horizontal structure in which the two companies sit side by side under the parent will be maintained. Harim Holdings' governance structure and shareholder ownership ratios will not change. The company said there will also be no impact on ownership ratios, results on consolidated financial statements or the asset structure.

The split procedure is expected to be completed on the split date of Dec. 1 after a resolution at a subsidiary shareholders meeting on Oct. 27.