South Korean conglomerate Hanwha Group is reportedly mulling the sale of FG Korea, which operates US burger chain Five Guys in the country.

FG Korea is a wholly owned subsidiary of Hanwha Galleria, the retail arm of Hanwha Group. 

The firm recently circulated documents to private equity firms through local accounting firm Samil PwC, signalling a potential sale process, The Korea Herald reported, citing people with knowledge of the matter.

If a deal materialises, it will likely result in a sale of 100 per cent of the company, the sources added.

FG Korea brought Five Guys into South Korea in 2023 with the first location opening in Seoul’s Gangnam district. The chain has expanded to seven restaurants, with an eighth set to open later this month in Yongsan, central Seoul.

Last year, the company signed a memorandum of understanding with Five Guys International to lead the brand’s expansion into Japan, targeting to hit over 20 stores in seven years.

FG Korea reported 46.5 billion won (US$33.4 million) in sales and 2 billion won in net income in the last fiscal year.

The potential sale comes as Hanwha Galleria looks to streamline its portfolio and cut costs, according to The Korea Herald.