Pharmaceutical and Bio Companies Wrap Up Shareholders' Meeting Season... Taking a Look at New Faces

As the so-called 'Shareholders' Meeting Super Week' of major domestic pharmaceutical and bio companies comes to an end, new 'leaders' have emerged at each company. While some companies have put forward new CEOs to lead a generational change, others have confirmed the reappointment of their existing CEOs.

From the top left clockwise: Cha Seok-yong, Chairman of Hugel; Park Jae-hyun, Vice President of Hanmi Pharmaceutical; Seo Jung-jin, Chairman of Celltrion; Lee Dong-hoon, President of SK Biopharm.
[Photo by each company]

According to the industry on the 3rd, most pharmaceutical and bio listed companies concluded their shareholders' meetings by the 31st of last month. During this shareholders' meeting season, most companies passed the originally proposed agenda items as they were.

Among the companies that introduced new figures through this shareholders' meeting is Hanmi Pharm. Hanmi Pharm held a shareholders' meeting on the 29th of last month and appointed Vice President Jae-Hyun Park (Head of Manufacturing Division) as the new CEO. The former CEO, Jong-Soo Woo, resigned this time, and Vice President Park succeeded him. Former CEO Woo is expected to remain as an advisor to Hanmi Pharm. A Hanmi Pharm official explained, "The generational change in management was completed marking the 50th anniversary of the company's founding." The new CEO Park joined Hanmi Pharm in 1993 as a researcher at the Formulation Research Center and has performed roles in pharmaceutical R&D, quality control, and overall production management. He has served as Executive Director and Senior Executive Director at Hanmi Pharm and is currently Vice President.

Hugel also recruited former LG Household & Health Care Vice Chairman Seok-Yong Cha, who consistently delivered strong performance in the industry to the extent that the phrase 'Cha Seok-Yong Magic' was coined. Cha was appointed as the new chairman and chairman of the board of directors through Hugel's regular shareholders' meeting and board meeting held on the 30th of last month. He served as CEO of LG Household & Health Care for 18 years from 2005 to 2022, achieving 17 consecutive years of sales and operating profit growth. In particular, he strengthened the portfolio of each business division through strategic mergers and acquisitions (M&A), with a total of 28 M&A deals conducted during his tenure. Hugel plans to accelerate growth by further enhancing its global strategies for botulinum toxin, fillers, and other products based on Chairman Cha's expertise in the aesthetics field and overseas market development experience, as well as strengthening new business development.

SK Biopharm also appointed President Dong-Hoon Lee as CEO at the board meeting on the 28th of last month following the resignation of former CEO Jo Jung-Woo. CEO Lee has worked at the global accounting firm KPMG, pharmaceutical companies, and SK Inc. Bio Investment Center, handling global new drug business development and bio investment tasks. Previously, he served as Vice President in charge of global business at Dong-A ST.

The Celltrion Group saw Honorary Chairman Jung-Jin Seo return to management. The three group companies?Celltrion, Celltrion Pharm, and Celltrion Healthcare?simultaneously reappointed him as an inside director at their shareholders' meetings held on the 28th of last month. Chairman Seo, who stepped down from frontline management two years ago to initiate second-generation management, declared his return citing unfavorable internal and external conditions surrounding the group and the importance of this year for global market expansion. The Celltrion Group expects that Chairman Seo's return will accelerate decision-making on M&A-related investments and the establishment of global strategies.

Companies have also increased the number of female executives appointed as inside directors. This is interpreted as part of spreading a culture of gender equality amid the rising focus on ESG (Environmental, Social, and Governance) management. Chong Kun Dang appointed Director Mi-Yeob Lee, in charge of new drug business development, as a new inside director at its shareholders' meeting. Director Lee is the first female inside director since Chong Kun Dang's establishment. Hanmi Pharm also appointed Myung-Hee Park, Head of Domestic Business Division, as an inside director. A Hanmi Pharm official explained, "She was appointed as a registered director to promote the spread of a gender-equal culture."

Meanwhile, major companies whose CEOs' terms expired during this shareholders' meeting season confirmed the reappointment of their existing CEOs. Samsung Biologics reappointed CEO John Rim for a three-year term after achieving industry-first sales of 3 trillion KRW last year. Jeil Pharmaceutical also passed the reappointment agenda for CEO Seok-Je Sung, marking his seventh consecutive term. If CEO Sung completes this term, his tenure will exceed 20 years. The reappointment agenda for Ki-Woosung, CEO (Vice Chairman) of Celltrion, was also passed. Daewon Pharmaceutical passed the reappointment agenda for Chairman Seung-Ho Baek and Vice Chairman Seung-Yeol Baek, who are the eldest and second sons of the company's founder, respectively.