[Exclusive] 'Sibling Management' Daewon Pharmaceutical, Early Establishment of 'Cousin Management' System

Vice Chairman Baek Seung-yeol's Eldest Son In-yeong Joins Company
Beyond Sibling Management, Full-Scale '3rd Generation Cousin Management'

Baek Inhwan, Executive Director of Daewon Pharmaceutical

[Asia Economy Reporter Cho Hyun-ui] Daewon Pharmaceutical, known for its second-generation 'brother management,' has entered a 'cousin management' system. Following Chairman Baek Seung-ho's eldest son Inhwan, Vice Chairman Baek Seung-yeol's eldest son Inyoung has joined the company, marking the full-scale start of third-generation management.

According to industry sources on the 27th, Inyoung joined Daewon Pharmaceutical last year and is currently working as a manager in the Production Planning Team. A Daewon Pharmaceutical official explained, "He is in charge of factory production-related tasks."

Currently, Daewon Pharmaceutical is jointly managed by the founder, former Chairman Baek Buhyun's eldest son Chairman Baek and his second son Vice Chairman Baek. Meanwhile, Chairman Baek's eldest son, Executive Director Baek Inhwan, paved the way for third-generation management by joining the company in 2011. Baek joined as a marketing team employee, was promoted to Executive Director of the New Business Division in 2016, and last year was promoted to Executive Director of the Marketing Headquarters.

Considering that Chairman Baek and Vice Chairman Baek are in their early to mid-60s, Daewon Pharmaceutical is expected to maintain the second-generation brother management system for the time being. However, with Executive Director Baek followed by Manager Baek joining, the pharmaceutical industry sees the outline of a rare 'cousin management' system being drawn.

Born in 1989, Manager Baek graduated from Case Western Reserve University in the U.S. in 2016, worked at a domestic accounting firm, and joined Daewon Pharmaceutical last year. This is similar to Executive Director Baek, born in 1984, who graduated from Brandeis University in the U.S., worked at Samjong KPMG accounting firm, and joined Daewon Pharmaceutical in 2011.

Daewon Pharmaceutical, which has focused on ethical drugs (ETC), had low consumer recognition. However, in 2015, it achieved success in the over-the-counter (OTC) market with the squeeze-type cold medicine 'Col Daewon.' Although a latecomer in cold medicine, it established itself in the market through differentiated marketing strategies.

In this process, Executive Director Baek, then Executive Director of the New Business Division, played a significant role. He focused on brand marketing by recruiting an over-the-counter team leader. Sales of Col Daewon, which were 500 million KRW at launch, grew to 1.1 billion KRW in 2016, 2.5 billion KRW in 2017, 4.8 billion KRW in 2018, and 6.8 billion KRW last year. Thanks to this, Daewon Pharmaceutical's sales exceeded 300 billion KRW for the first time last year.

Meanwhile, Chairman Baek Seung-ho's second son Inseong (born 1987) and Vice Chairman Baek Seung-yeol's second son Injae (born 1992) are currently not involved in management.