'Beyond the Keyman' Directly Taking the Frontline
Shin Dong-guk, Chairman of Hanyang Precision
Forms 'Three-Party Alliance' with Mother and Daughter
Im Jong-yoon States "Chairman Shin Cooperates with Us"
Issues Press Release to Refute
The management rights dispute within Hanmi Pharmaceutical Group has flared up again. On the 10th, Lim Jong-yoon, a director of Hanmi Science and son of Song Young-sook, chairman of Hanmi Pharmaceutical Group, who allied with Shin Dong-guk, chairman of Hanyang Precision and the largest individual shareholder of the holding company Hanmi Science, issued a press release stating that "he has agreed to cooperate with Chairman Shin in management," launching a counterattack.
On the same day, Director Lim released a press statement through a PR agency, announcing, "Chairman Shin and I have decided to move beyond the simple vertical relationship of chairman and CEO in the past and invest generously in human resources to translate value-up into tangible results." He further explained in the press release, "Chairman Shin highly appreciates Chairman Song's decision to step down from frontline management on a magnanimous level, and discussions are underway with the (Jong-yoon and Jong-hoon) brothers on a hybrid approach combining responsible management, professional management, and righteous management."
Chairman Shin, the largest individual shareholder of Hanmi Pharmaceutical Group, has played a 'keyman' role in the ongoing mother-son and sibling management rights dispute. In March, he contributed to the victory by supporting the brothers at the Hanmi Science shareholders' meeting. Since then, he began engaging in group management by entering Hanmi Pharmaceutical as a non-executive director. However, on the 3rd, he formed a 'three-party alliance' by signing a joint voting rights agreement and a partial stock purchase contract with the mother-daughter side of Song Young-sook and Lim Joo-hyun. Subsequently, Chairman Song announced her intention to step down from frontline management, stating, "We will establish a professional management system centered on Chairman Shin."
However, Director Lim, representing the brothers, claimed in the press release on the same day that Chairman Shin had agreed to cooperate with him. He stated in the press release, "With Chairman Shin's mediation, the mother-daughter and brothers have united in purpose, ending the dispute."
Contrary to Director Lim's claims, concerns are emerging within the pharmaceutical industry that this announcement may actually rekindle the family management rights dispute. In the press release, Director Lim stated, "The brothers will cooperate with Chairman Shin to establish advisory groups within the group and practice responsible management, professional management, and righteous management." The previously announced 'professional management recruitment' by Chairman Song was not mentioned, while 'responsible management' was emphasized. Industry insiders interpret this as Director Lim expressing his intention to directly assume the CEO position of Hanmi Pharmaceutical following the shareholders' meeting victory.
A Hanmi Pharmaceutical Group official said, "We are currently assessing the situation," and added, "We are verifying whether the positions of Chairman Song and other related parties have been properly reflected in the press release distributed by Director Lim."
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