National Pension Service Exercises Voting Rights Neutrality in Management Dispute at Hanmi Science

The National Pension Service (NPS) has decided to maintain voting neutrality ahead of the Hanmi Science shareholders' meeting (general meeting of shareholders, GMS), which is embroiled in a management rights dispute.

The NPS Fund Stewardship Committee held a meeting on the 26th and decided to remain neutral on the agenda proposed by the mother-daughter faction, including Song Young-sook, Chairwoman of Hanmi Pharm Group, and Vice Chairman Lim Joo-hyun, at the special GMS of Hanmi Science scheduled for the 28th. The mother-daughter faction proposed the appointment of Vice Chairman Lim and Shin Dong-guk, Chairman of Hanyang Precision, as directors, as well as expanding the board size from a maximum of 10 to 11 members.

The management rights dispute at Hanmi Science is a confrontation between a three-party alliance consisting of Chairwoman Song, Vice Chairman Lim, and Shin, the largest individual shareholder, and the brothers Lim Jong-yoon, an inside director of Hanmi Science, and Lim Jong-hoon, CEO of Hanmi Science. The three-party alliance aims to appoint Vice Chairman Lim and Shin as new directors and expand the board size to reorganize the board at this special GMS. Currently, Hanmi Science's board consists of five members from the brothers' side and four from the three-party alliance, and the alliance intends to reverse the balance from 6 to 5. The brothers' side is attempting to reject this agenda.

With this decision, the NPS will exercise its voting rights in proportion to the approval and disapproval ratios of the other shareholders. As of the end of September, the NPS holds 6.02% of Hanmi Science's shares. Hanmi Science is the holding company of Hanmi Pharm.