Hanmi Pharmaceutical chair intends to step down

[Photo by Yonhap]

Song Young-sook, the wife of the late founder of Hanmi Pharmaceutical Group, Lim Sung-ki, announced her intention to step down from the management of the South Korean pharmaceutical firm.

With her daughter, Hanmi Science Co. Vice Chairman Lim Joo-hyun, showing interest in the management structure of Germany’s Merck Group, which separates ownership and management, speculation is rising that Hanmi Pharmaceutical Group could establish a new governance structure amid this transition.

In a statement distributed by Hanmi Pharmaceutical Group on Monday, Song stated her position regarding the agreement for joint exercise of voting rights and the stock purchase contract with Shin Dong-guk, chairman of auto-parts manufacturer Hanyang Precision.

“I deeply appreciate Shin’s decision,” Song said, expressing hope that Hanmi would be reborn as a new entity with a professional management system centered around Shin, who hails from the same town as the late Lim.

“This decision represents the two main shareholders, who understand Lim’s intentions the best, joining forces.”

According to Song, selling Hanmi shares to an overseas fund, which would lead to the loss of Hanmi’s identity, should never happen. This belief was her firm conviction and the way to honor the late Lim’s intentions, and the joint exercise of voting rights agreement is the best solution to achieve this.

Song emphasized that the professional management system was also in line with Lim’s wishes, which she supports.

“The next generation of Hanmi’s management should be handled by professional managers, and the major shareholders should support this through the board, moving towards an advanced governance structure,” she said. “We will show a more advanced Hanmi, joining forces with Shin, from this decision onward.”

Song and Vice Chairman Lim announced that they signed a contract with Shin on July 3rd, 2024, to jointly exercise voting rights regarding their shares in Hanmi Science.

Due to the share transaction, Song and Vice Chairman Lim’s shares in Hanmi Science decreased from 11.93 percent 6.16 percent and from 10.43 percent to 9.7 percent respectively. Meanwhile, Shin’s share increased from 12.43 percent to 18.93 percent. As a result, Song and her friendly shares now total 48.19 percent.

Shin sided with Hanmi Science Directors Lim Jong-yoon and Lim Jong-hoon at Hanmi Science’s shareholder meeting in March in their management rights dispute against the mother-daughter duo. But there is speculation that the management rights dispute could reignite as he switches sides.