This study empirically investigates family firms' changing strategic tendency on restructuring depending on corporate circumstances. The findings demonstrate that family firms are generally less likely than non-family firms to conduct corporate restructuring. However, their engagement in restructuring becomes even greater than non-family firms as financial performance deteriorates. In other words, the results suggest that rather than always being more reluctant to engage in restructuring to preserve existing socioemotional wealth (SEW), family firms can conduct more restructuring than non-family firms, especially when they pursue long-term SEW gains at the expense of short-term SEW loss. By focusing on the specific condition under which restructuring becomes an act of strengthening SEW, this study further refines the complex nature of family firms’ strategic decisions on restructuring.