National Pension Service Opposes Dismissal of Hanmi Pharm CEO Park Jaehyun...Effectively Supports Mother-Daughter Side

Opposition to National Pension Decision
Dismissal Proposal Likely to Fail
Representative Park Classified as Member of '4-Party Coalition'

At the Hanmi Pharm shareholders' meeting scheduled for the 19th, the possibility of dismissing the current CEO Park Jaehyun has virtually disappeared. This is because proxy advisory firms unanimously recommended 'against,' and the National Pension Service, which holds a 9.4% stake, also decided to oppose it. CEO Park is classified as a close associate of the 'four-party alliance,' including Hanmi Science Chairwoman Song Youngsook, former Vice Chairman Lim Juhyun, private equity firm La D?fense, and Shin Dongguk, Chairman of Hanyang Precision.

The National Pension Fund Stewardship Committee held its 16th meeting on the 13th to deliberate on the voting direction for the agenda of the Hanmi Pharm extraordinary shareholders' meeting (on the 19th).

The committee judged that the grounds for dismissing Hanmi Pharm inside director Park Jaehyun and outside director Shin Dongguk were insufficient and decided to vote 'against' each dismissal proposal. Additionally, the committee also decided to vote 'against' the proposals to appoint inside directors Park Junseok and Jang Younggil, which were contingent on the dismissal of the existing directors.

Previously, the holding company Hanmi Science proposed the dismissal of CEO Park Jaehyun. The reason cited was that since his appointment, Park has been leading efforts to sell the group to OCI and has been solely focused on activities for the four-party alliance, which is composed of the mother and daughter faction, neglecting management activities.

Hanmi Science holds a 41.4% stake in Hanmi Pharm. Since the dismissal proposal requires a special resolution, two-thirds of the attending shareholders' approval is necessary. Due to the opposition from the National Pension Service, the passage of the dismissal proposal has become virtually impossible. The dismissal proposal for outside director Shin Dongguk, who belongs to the four-party alliance, also appears unlikely to be approved. On the other hand, the proposals to appoint inside directors Park Junseok and Jang Younggil, promoted by Hanmi Science, can no longer be guaranteed to pass. Director appointments require the approval of a majority of the shareholders attending the meeting.