National Pension Service Supports Hanmi Pharmaceutical Group's 'Mother-Daughter Side'... Jeonse Prices Reversed Again

Mother and Daughter's Struggle for Shares Reversed Again
Mother and Daughter Secure 40.86% Stake, Siblings Lead with 38.4%
Minority Shareholders' Votes Likely Decisive Until the End

The tide of the shareholder meeting vote battle at Hanmi Science, which had been leaning toward the brothers' side, has been reversed again by the decision of the National Pension Service. This is because the National Pension Service decided to cast its votes in favor of the mother-daughter side. A green light has been turned on again for Hanmi Pharmaceutical Group's path toward integration with OCI.

The National Pension Service's Stewardship Responsibility Committee held its 6th meeting on the 26th. It reviewed the voting directions on agenda items for the shareholder meetings of four companies: Hanmi Science, LS, Samyang Foods, and DB HiTek.

Regarding the agenda items for the regular shareholder meeting of Hanmi Science (scheduled for the 28th), where the board's proposals and shareholder proposals compete for the appointment of directors and audit committee members, the National Pension Service judged that the board's proposals better align with long-term shareholder value enhancement. It decided to 'approve' the appointments of inside directors Lim Ju-hyun and Lee Woo-hyun, non-executive director Choi In-young, outside directors Park Kyung-jin, Seo Jeong-mo, and Kim Ha-il, as well as audit committee members Park Kyung-jin and Seo Jeong-mo. It decided to 'oppose' the appointments of candidates recommended through shareholder proposals.

Ahead of the Hanmi Science shareholder meeting, there is a confrontation between the mother-daughter side, led by Chairwoman Song Young-sook and her eldest daughter, President Lim Ju-hyun, who are pushing for integration with OCI Group, and the brothers' side, led by Song Young-sook's eldest and second sons, Lim Jong-yoon and Jong-hoon, who oppose the OCI integration. The mother-daughter side proposed appointing a total of six members, including President Lim Ju-hyun of Hanmi Science and Chairman Lee Woo-hyun of OCI Group, while the brothers' side proposed appointing five members, including themselves.

The National Pension Service holds a 7.91% stake in Hanmi Science. With the support of the largest individual shareholder, Chairman Shin Dong-guk of Hanyang Precision (holding 12.15%), the brothers' side opposing integration with OCI Group had secured 38.4% of voting rights, surpassing the 32.95% secured by the mother-daughter side. However, with the National Pension Service's decision to support the current board on this day, the mother-daughter side took the lead in the shareholding competition with 40.86%, gaining an advantageous position in the vote battle. Both sides are intensifying efforts to consolidate votes from minority shareholders and foreigners holding the remaining 20.7% of shares.

The National Pension Service decided to oppose the appointment of LS inside director Koo Ja-eun due to a history of corporate value impairment, and also opposed the appointment of Samyang Foods inside director Kim Jung-soo for the same reason.

Regarding DB HiTek's proposed amendment to the articles of incorporation to change the number of directors from 'at least 4' to 'at least 4 and no more than 8,' the National Pension Service judged there was a concern that it could restrict the appointment of outside director candidates recommended by shareholder proposals and decided to oppose it. It also opposed the proposed amendment to the articles of incorporation granting the shareholder meeting authority over treasury stock cancellation (a shareholder proposal), as well as the treasury stock cancellation proposal based on the aforementioned amendment. Additionally, it decided to approve the appointment of inside director Lee Sang-gi, outside director and audit committee member Hwang Cheol-sung, and audit committee members Yoon Young-mok and Han Seung-yeop.