Pharmaceutical and Bio Shareholders' Meeting Season Opens... Focus on Strengthening Governance and Injecting Experts

"Super GMS Day" on the 26th for Companies Including Chong Kun Dang

John Lim, CEO of Samsung Biologics, is speaking at the regular general meeting held on the 14th at Songdo Convensia in Yeonsu-gu, Incheon. Photo by Samsung Biologics

Major domestic pharmaceutical and bio companies are focusing on strengthening governance and recruiting experts during the regular general meeting of shareholders (GMS) period, which begins in earnest on the 14th. Amid repeated quantitative growth, they plan to establish a more stable governance system and enhance core competencies such as expert-centered research and development (R&D).

According to the pharmaceutical and bio industry, the regular GMS of major companies officially begins on this day, starting with Samsung Biologics. The day with the most GMSs, known as "Super GMS Day," is on the 26th of this month. Many companies, including Chong Kun Dang, Green Cross, SK Bioscience, Daewoong Pharmaceutical, Dong Wha Pharm, Kwangdong Pharmaceutical, Bukwang Pharmaceutical, Ildong Pharmaceutical, and JW Pharmaceutical, will hold their GMS on that day.

Samsung Biologics amended its articles of incorporation at the GMS to eliminate the executive director rank and add an ESG (Environmental, Social, and Governance) Committee. Accordingly, the number of committees within Samsung Biologics’ board of directors increased from five to six, including the ▲Outside Director Candidate Recommendation Committee ▲Audit Committee ▲Management Committee ▲Internal Transactions Committee ▲Compensation Committee, and the new ESG Committee.

Additionally, the agenda to appoint newly appointed CFO (Chief Financial Officer) Vice President Yoo Seung-ho, who was selected in the year-end executive personnel reshuffle, as an inside director was processed. Vice President Yoo was previously a financial expert affiliated with Samsung Electronics. He is expected to lead facility investments at Samsung Biologics. John Rim, CEO of Samsung Biologics, said, "We want to make this year the first year of a new leap forward," adding, "In April, the 5th plant, which opens the era of the 2nd bio campus, is scheduled to be completed." He also stated, "Efforts to expand the portfolio and global bases will continue."

Celltrion will decide on the reappointment of Chairman Seo Jung-jin as an inside director at the regular GMS on the 25th of this month. Previously, in 2021, Chairman Seo voluntarily stepped down from the front lines of management but returned as an inside director and co-chairman of the board after two years, citing the need for leadership. His term expires this month. Through this regular GMS, Chairman Seo’s management participation is expected to continue for another two years. After returning to management, Chairman Seo led the merger of Celltrion and Celltrion Healthcare.

Hanmi Pharmaceutical Group, which has been embroiled in a management dispute, is reorganizing its governance. Hanmi Science will submit an agenda at the regular GMS to appoint four inside director candidates: Lim Ju-hyun, Vice Chairman of Hanmi Science and Hanmi Pharmaceutical; Kim Jae-kyo, former Vice President of Meritz Securities; Shim Byung-hwa, former Executive Director of Samsung Biologics; and Kim Sung-hoon, former Executive Director of Hanmi Science. The plan is to establish advanced governance where major shareholders and professional managers maintain checks and balances centered on the recruited professional managers. This is interpreted as an extension of the advanced governance establishment intention announced at the board meeting on the 5th of this month, which stated, "Management is entrusted to professional managers, and major shareholders support and check them." The board has nominated Vice Chairman Kim as CEO of Hanmi Science and Vice President Shim as CFO (Chief Financial Officer).

Boryung is expected to lay the foundation for independent management by "third-generation owner" Chairman Kim Jeong-gyun. Boryung held a board meeting on the 28th of last month and resolved to change from a dual CEO system with Kim Jeong-gyun and Jang Du-hyun as co-CEOs to a single CEO system with Kim Jeong-gyun as the sole CEO. Subsequently, at the GMS scheduled for the 31st, the agenda to reappoint CEO Kim as an inside director will be put to a vote.

JW Pharmaceutical will approve the agenda to newly appoint President Ham Eun-kyung as an inside director at the regular GMS scheduled for the 26th of this month. President Ham currently serves as the group’s Chief Development Officer (CDO). Previously, she held positions such as Head of JW Holdings’ JW Management Planning Office, Head of JW Life Science’s Management Planning Office, and CEO of JW Bioscience. President Ham is responsible for major areas including R&D.