[Special Stock] Hanmi Science Surges Over 8% Amid New Phase of Management Dispute

Song Young-sook, chairman of Hanmi Pharmaceutical Group, and her eldest daughter, Vice Chairman Lim Joo-hyun, have paved the way to regain the management rights that were taken away by the brothers Lim Jong-yoon and Lim Jong-hoon, marking a new phase in the management dispute within the group. Meanwhile, on the 4th, the stock price of Hanmi Science, the holding company of Hanmi Pharmaceutical Group, showed strong performance.

As of 9:22 a.m. that day, Hanmi Science was trading at 33,800 KRW, up 2,650 KRW (8.51%) from the previous trading day. Early in the session, the stock price soared 13.8% to reach 35,450 KRW.

According to the law firm Sejong on the previous day, Shin Dong-guk, chairman of Hanyang Precision, signed a stock purchase agreement to buy 6.5% of Hanmi Science shares held by Chairman Song and Vice Chairman Lim, the group’s holding company, along with a voting rights joint exercise agreement allowing them to exercise voting rights together. With Chairman Shin, who had been classified as an ally of the brothers, switching sides, the mother and daughter regained the status of the largest shareholders and were able to reclaim management rights.

These three individuals, including their immediate family and friendly shareholders, secured shares close to a majority of the total voting rights of Hanmi Science. With this contract, Chairman Song and Vice Chairman Lim also secured funds to pay inheritance taxes. Since the death of the late Chairman Lim Sung-gi in 2020, the owner family was imposed an inheritance tax of approximately 540 billion KRW, and after installment payments, Chairman Song still owes about 100 billion KRW, and Vice Chairman Lim Joo-hyun owes about 50 billion KRW in unpaid inheritance taxes.

Thus, the management dispute within the group, which seemed to have ended with the brothers’ side winning, has entered a new phase. The brothers’ side secured management rights through the Hanmi Science shareholders’ meeting in March, and the second son, Director Lim Jong-hoon, was appointed as the new CEO. The owner family’s management dispute arose when the brothers opposed the merger plan with OCI Group, which was announced earlier this year under the leadership of the mother and daughter side.