Pharmaceutical Industry's '30s Owners' Positioned for Management Advancement

Solid Management Training Experience... Succession Process in Full Swing

Handok to Appoint Executive Director Kim Donghan at Next Month's General Meeting
Donghwa Owner 4th Generation Yoon Inho Promoted from Executive Director to Vice President
Boryung Appoints New CEO Kim Jeonggyun as Holdings CEO

[Asia Economy Reporter Chunhee Lee] The ‘3rd and 4th generation owners in their 30s’ of traditional pharmaceutical companies are stepping forward to take full charge of management. Most of them joined pharmaceutical companies early on and have received solid management training. This is interpreted as a strategic move to naturally continue management succession by either joining the board of directors or directly taking on the role of CEO and actively participating in management.

According to the pharmaceutical industry on the 23rd, Handok has proposed an agenda to appoint Kim Dong-han, Executive Director of the Management Coordination Office (38), as an inside director at the regular shareholders’ meeting scheduled for the 24th of next month. Executive Director Kim is the grandson of the late Kim Shin-kwon, the founder and honorary chairman of Handok, and the eldest son of Kim Young-jin, Chairman of Handok. Since the agenda to reappoint Chairman Kim as an inside director will also be submitted at this regular shareholders’ meeting, Executive Director Kim will not fully lead the company, but as he will be able to officially participate in the board, it is evaluated that the management succession process has begun in earnest.

Executive Director Kim joined Handok in 2014 and was promoted from team leader to director, becoming an executive director in 2020. He is also the largest shareholder of Y&S International, which holds the largest stake of 17.7% in Handok. Y&S is known as a family company of the Handok owner family, with Kim Seok-jin, the younger brother of Chairman Kim, serving as CEO, and Executive Director Kim as the largest shareholder. Chairman Kim leads Handok with a total stake of 43.4%, combining his shares in Y&S and his personal 13.7% stake.

Dongwha Pharmaceutical and Boryung Pharmaceutical have also recently intensified management participation by the 3rd and 4th generation owners. On the 21st, Dongwha Pharmaceutical promoted Yoon In-ho, Executive Director (38), the eldest son of Chairman Yoon Do-jun and a 4th generation owner, to Vice President and appointed him as Chief Operating Officer (COO) in the recent regular executive personnel reshuffle. Vice President Yoon is the great-grandson of Yoon Chang-sik, the founder of Dongwha Pharmaceutical and regarded as the company’s ‘second founder.’ He joined Dongwha Pharmaceutical as a manager in 2013, was promoted to executive director in 2019, and joined the board of directors. He also concurrently serves as CEO of Dongwha GNP, the largest shareholder of Dongwha Pharmaceutical with a 15.2% stake. Yoon’s older sister, Yoon Hyun-kyung (42), is also serving as an executive director at Dongwha Pharmaceutical.

Boryung Pharmaceutical appointed Kim Jeong-gyun (37), CEO of Boryung Holdings, as the new president this year. This move allows him to oversee the management of both the holding company Boryung Holdings and the operating company Boryung Pharmaceutical, marking his official frontline management role. President Kim is the maternal grandson of Kim Seung-ho, the founder of Boryung Pharmaceutical, and the son of Kim Eun-sun, Chairwoman of Boryung Holdings. During his management participation process, he made headlines by changing his name from ‘Yoo Jeong-gyun’ to ‘Kim Jeong-gyun.’

Among the owner families in their 40s, some companies are completing management succession one after another. Heo Seung-beom (41), the 3rd generation owner and chairman of Samil Pharmaceutical, solidified the management system by being promoted to chairman earlier this year. He is the eldest son of honorary chairman Heo Kang and joined Samil Pharmaceutical in 2005, was appointed president in 2014, and served as vice chairman since 2018.

Kyungdong Pharmaceutical has been under the sole management of Vice Chairman Ryu Gi-seong (40) since last year, after founder and honorary chairman Ryu Deok-hee stepped down from frontline management. Vice Chairman Ryu joined Kyungdong Pharmaceutical in 2006, served as head of the management strategy division, and was appointed CEO in 2011.

Not only in the pharmaceutical industry but also in the bio industry, management succession by owner families is gradually emerging. At Celltrion Group, led by Seo Jung-jin, a representative of Korea’s first generation bio industry who has stepped down as honorary chairman, his eldest son Seo Jin-seok (38), chairman of the boards of Celltrion and Celltrion Pharm, and his second son Seo Jun-seok (35), chairman of the board of Celltrion Healthcare, serve as chairmen of the boards of major affiliates within the group. However, since Chairman Seo has declared the ‘separation of ownership and management,’ there is speculation that if the ongoing merger of the three companies?Celltrion, Celltrion Healthcare, and Celltrion Pharm?is completed, Chairman Seo Jin-seok may hold ownership only and not participate in management.