Hanmi Pharm Brothers File Complaint Against Mother-Daughter Management... "Unnecessary Real Estate Leasing Caused Fund Outflow"

Hanmi Science "Contract Terms, Advance Rent Payment Constitute Breach of Duty"
Hanmi Pharm "Leased Business Purpose Building with Brother's Consent"

Amid a flurry of lawsuits and counter-lawsuits between the owners of Hanmi Pharm Group who are engaged in a management rights dispute, Hanmi Science, controlled by the brothers, has filed a complaint with the Seoul Metropolitan Police Agency against Hanmi Pharm, controlled by the three-party coalition.

According to the pharmaceutical industry on the 21st, Hanmi Science filed a complaint on the 18th with the Seoul Metropolitan Police Agency against Lim Juhyun, Vice Chairman of Hanmi Pharm Group, and Woo Gisuk, CEO of Online Pharm, a Hanmi Pharm affiliate, on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust). One of the allegations in the complaint is that Online Pharm, a pharmaceutical distribution company, leased unnecessary real estate and embezzled company funds. In response, the three-party coalition said they would counter-sue the brothers for false accusation, obstruction of business, breach of trust, and other charges.

According to the complaint, the brothers claim that Vice Chairman Lim colluded with CEO Woo to enter into an abnormal lease contract for real estate in Sinsa-dong, Gangnam-gu, Seoul, where a building is planned to be constructed. The building was originally used as a gallery, but Online Pharm recently signed a 20-year lease contract with a deposit of 4.8 billion KRW and a monthly rent of 400 million KRW, paying the deposit in advance. The building owner plans to demolish the existing building and construct a new building for Hanmi Pharm's use.

The brothers allege in the complaint that under Vice Chairman Lim's instructions, Online Pharm leased real estate that was unnecessary for management and business purposes on a long-term basis, and by paying the lease deposit for the new building in advance despite the existing building not being demolished, they provided undue benefits to the building owner and caused losses to Online Pharm. A representative of the brothers stated, "There are suspicions that the building housed President Yoon Seok-yeol's private election office during the last presidential election, and the building owner is still close to President Yoon's side."

In response, a Hanmi Pharm official said, "The real estate was leased in May by CEO Woo with the consent of Lim Jonghoon, CEO of Hanmi Science, and after review by Hanmi Science's legal team for the purpose of installing a Hanmi Pharm flagship store," adding, "The contract secured favorable conditions for the company, including building design tailored to Hanmi Pharm's requirements, deduction of interest costs from monthly rent due to advance deposit payment, and permission for subleasing in case of vacancy."

The official further explained, "The claim that President Yoon's election office used the building is just a rumor, and this contract has no relation to politics," adding, "Online Pharm considered several sites and judged this real estate to be the optimal location, signing the contract after competing with other plastic surgery clinics for the lease." Hanmi Pharm announced through a press release that it plans to counter-sue the brothers, including Lim Jonghoon, CEO of Hanmi Science, for false accusation.

Currently, Hanmi Pharm Group is embroiled in a dispute over management rights between the brothers Lim Jongyun, inside director of Hanmi Science holding the holding company's management rights, and Lim Jonghoon, CEO, and the three-party coalition consisting of Song Youngsook, Chairwoman of Hanmi Pharm Group who holds management rights of Hanmi Pharm, Vice Chairman Lim Juhyun, and Shin Dongguk, Chairman of Hanyang Precision and the largest individual shareholder. Both sides will engage in a vote battle over agenda items such as expanding the number of directors and appointing new directors at the Hanmi Science extraordinary shareholders' meeting scheduled for the 28th.