Hanmi Brothers File Criminal Complaints Against All Members of the Tripartite Alliance

Criminal Charges Filed Against All Members of the 3-Ja Alliance

Hanmi Science has recently filed a criminal complaint against all members of the three-party coalition, following an internal director, Im Jong-yoon, reporting Song Young-sook, Chairwoman of Hanmi Pharmaceutical Group and mother of Director Im, and Park Jae-hyun, CEO of Hanmi Pharmaceutical, to the police on charges of breach of trust.

On the 15th, Hanmi Science filed a complaint with the Gangnam Police Station in Seoul against the three-party coalition, including Chairwoman Song, Hanmi Pharmaceutical Group Vice Chairman Im Joo-hyun, and Shin Dong-guk, Chairman of Hanyang Precision and the largest individual shareholder, as well as the representative of the company entrusted with soliciting proxy voting rights, on charges of deception and obstruction of business.

A Hanmi Science official stated, "It was inevitably decided to proceed with criminal charges as cases have been confirmed where the three-party coalition conspired with the proxy voting solicitation company to misuse the company logo and mislead shareholders with false information, inducing incorrect judgments."

The official added, "The reports included false information such as 'the National Pension Service has also turned to the three-party coalition' and 'a rights offering will take place,' delivering unconfirmed or undecided matters as facts to shareholders. It was also confirmed that the proxy voting company of the three-party coalition had printed our company logo prominently on printed materials and business cards provided to shareholders."

The three-party coalition argued that since the business cards clearly state that they are representatives soliciting proxy voting rights for the largest shareholder or the coalition, and also include the name of the proxy company, there is no reason to mistake them for Hanmi Science. They also rebutted that their legal firm has opined that these actions cannot be considered obstruction of business.

They continued, "Although we have secured many examples of slanderous acts by the opposing side, we have not disclosed them to maintain healthy competition. Since shareholder sentiment is leaning towards the three-person coalition, the opposing side is repeatedly filing complaints out of anxiety, which is very regrettable. However, we will proceed unwaveringly with the shareholders towards the special resolution," they emphasized.

The conflict between the 'three-party coalition,' which aims to reorganize the board of directors by expanding the number of directors and appointing two new directors at the Hanmi Science extraordinary general meeting on the 28th, and the faction seeking to reject these proposals, is escalating into a series of legal complaints.

Previously, on the 13th, Han Seong-jun, CEO of Kori Group, the largest shareholder and affiliated with Director Im Jong-yoon, filed a complaint with the Gangnam Police Station against Chairwoman Song and CEO Park Jae-hyun of Hanmi Pharmaceutical on charges of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes.

CEO Han claimed that Hanmi Pharmaceutical, without board resolution or approval, provided nearly 12 billion KRW in donations over three years to the Gahyeon Cultural Foundation, established and effectively managed by Chairwoman Song, causing damage to shareholders of Hanmi Pharmaceutical and its holding company Hanmi Science due to decisions and instructions by Chairwoman Song and CEO Park.

This donation act is viewed as an act of improperly influencing shareholder meetings to pursue personal gain for specific individuals.

The Gahyeon Cultural Foundation, which holds a 4.9% stake in Hanmi Science, exercised voting rights at the Hanmi Science shareholders' meeting in March on behalf of Chairwoman Song and Vice Chairman Im Joo-hyun’s mother-daughter faction, instead of Director Im and CEO Im Jong-hoon’s faction.

Hanmi Pharmaceutical opposed the complaint filed by Director Im’s side, stating that it was intended to block the foundation’s exercise of voting rights at the Hanmi Science extraordinary general meeting. Hanmi Pharmaceutical also pointed out that Director Im had previously donated to the Gahyeon Cultural Foundation without board resolution, suggesting that the complaint could be a 'self-destructive' act.