Hanmi Pharmaceutical Brothers File Police Complaint Against Mother, Claiming "Unfair Influence on Shareholders' Meeting Resolution"

Chairman Song Young-sook and CEO Park Jae-hyun Accused of Breach of Trust
Hanmi Pharm, "Intent to Prevent Gahyeon Cultural Foundation from Exercising Voting Rights"

An insider from the side of Lim Jong-yoon, an inside director of Hanmi Science who is involved in a family management rights dispute, has filed a complaint with the police accusing Song Young-sook, chairwoman of Hanmi Pharm Group and mother of Director Lim, and Park Jae-hyun, CEO of Hanmi Pharm, of breach of trust.

According to the pharmaceutical industry on the 15th, Han Sung-joon, CEO of Kori Group, filed a complaint on the 13th at Gangnam Police Station against Chairwoman Song and CEO Park for violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust). Kori Group, a pharmaceutical distribution company, is the company where Director Lim is the largest shareholder. CEO Han is a close aide of Director Lim.

In the complaint, CEO Han claimed, "Hanmi Pharm caused damage to the shareholders of Hanmi Pharm and its holding company Hanmi Science by providing nearly 12 billion KRW in donations over three years to the Gahyeon Cultural Foundation, established and effectively managed by Chairwoman Song, without a resolution or approval from the board of directors, based on decisions and instructions from Chairwoman Song and CEO Park." He further asserted, "Such donations to the Gahyeon Cultural Foundation constitute an act of improperly exerting influence over the shareholders' meeting resolution for the pursuit of private interests of specific individuals."

The Gahyeon Cultural Foundation, which holds 4.9% of Hanmi Science shares, voted at the Hanmi Science shareholders' meeting in March on behalf of the Lim Jong-yoon and Lim Jong-hoon brothers' side, siding instead with Chairwoman Song and Vice Chairman Lim Joo-hyun, mother and daughter. It is claimed that Hanmi Pharm's donations influenced this decision. In September, the Lim brothers' side sent official letters to the Gahyeon Cultural Foundation and the Lim Sung-gi Foundation, stating that "until the two foundations promise to remain neutral at the Hanmi Science extraordinary shareholders' meeting scheduled for the 28th, support for the foundations' operating expenses from Hanmi Science will be withheld."

The mother-daughter duo and Shin Dong-guk, chairman of Hanyang Precision and the largest individual shareholder of Hanmi Science, form a three-party alliance aiming to reorganize the board of directors controlled by the brothers at the extraordinary shareholders' meeting on the 28th. In response, the brothers' side is attempting to defeat the board reorganization plan by securing friendly minority shareholder stakes.

Regarding the complaint filed by Director Lim's side, a Hanmi Pharm official stated, "It is an unfair attempt to block the foundation's exercise of voting rights at the extraordinary shareholders' meeting on the 28th."