Lim Jong-yoon, Director of Hanmi Science, Appeals to Raise Hanmi Pharm Stock Price to 1 Million Won

"Strengthening R&D Capabilities and Accelerating New Drug Development"

Im Jong-yoon, an inside director of Hanmi Science, sent a letter to shareholders of its affiliate Hanmi Pharm, pledging to pursue innovative management to raise the stock price to 1 million won, about four times the current price.

Lim Jong-yoon, Inside Director of Hanmi Pharm. Photo by Yonhap News

Also an inside director of Hanmi Pharm, he appealed to shareholders on the 9th, stating, "To overcome the crisis and propel Hanmi Pharm's stock price to 1 million won with '1 Million Hanmi' and to become a 'Social Contribution Hanmi' loved by the public, I want to join forces with all shareholders." He added, "We promise to improve the negative image that was once seen as a family dispute and transform into a shareholder-centered management and socially responsible company."

As a specific plan, Director Im explained, "We will dismiss the former CEO (Park Jae-hyun), who caused discord with the holding company through arbitrary management ignoring rules and principles, and appoint Park Joon-seok, a new director who is the right person for new drug development with experience as a clinical doctor at Hyundai Asan Hospital and managerial expertise at Hanmi Science, to strengthen research and development (R&D) capabilities and accelerate new drug development."

He continued, "To reinforce the professional management system, we will guarantee stable management from the term of the new CEO and introduce a shareholder recommendation system for outside directors." He added, "To realize sustainability and responsible management, we will expand the application of ESG (Environmental, Social Responsibility, and Corporate Governance) systems such as introducing eco-friendly manufacturing processes, waste management and recycling, setting carbon neutrality goals, and developing green products."

Furthermore, he said, "We will establish and implement a long-term plan to purchase a certain amount of treasury shares annually and burn a certain percentage, and completely review the dividend system for appropriate dividend size and quarterly dividends to implement it within the first half of next year." He also stated, "We will form a Shareholder Co-prosperity Development Committee to strengthen communication and returns to shareholders through IR, sharing clinical news, and discounted drug sales to shareholders."

He also promised to transform Hanmi Pharm into a respected company fulfilling social responsibility. Director Im said, "We plan to use a certain amount of Hanmi Pharm’s profits, about 10 billion won, to help neighbors in our society who are struggling with pediatric cancer, rare diseases, and difficulties in hospital treatment." He emphasized, "We will correct the opaque decision-making by the previous management that contributed to the Gahye Foundation and Im Seong-gi Foundation without board resolution, and establish transparent and fair regulations on the purpose and method of contributions through a new board system to build the image of 'Social Contribution Hanmi.'"

He added, "We will establish ourselves as a pharmaceutical company leading ESG management and grow into a social contribution company trusted and loved by the public." He further stated, "To this end, after this general shareholders’ meeting, we will establish an ESG implementation plan through comprehensive ESG consulting and prepare to settle as a leading ESG company."

Director Im appealed, "To realize '1 Million Hanmi' and 'Social Contribution Hanmi,' the cooperation and support of shareholders are absolutely necessary," and urged, "I ask for full support for the shareholder proposals at the upcoming extraordinary general shareholders’ meeting."

The 'brother faction' of Hanmi Science’s inside director Im Jong-yoon and CEO Im Jong-hoon plans to push for the dismissal of Hanmi Pharm CEO Park Jae-hyun and four other directors, including Shin Dong-guk, chairman of Hanyang Precision and a non-executive director, at the Hanmi Pharm extraordinary general shareholders’ meeting on the 19th.

Shin, the largest individual shareholder of Hanmi Science, along with Song Young-sook, chairwoman of Hanmi Pharm Group, Vice Chairman Im Joo-hyun, and the 'four-party alliance' of Killington Limited, are countering by filing an injunction with the court to prohibit the exercise of voting rights based on CEO Im Jong-hoon’s sole decision.