Shin Dongguk Refutes 'Sexual Misconduct Cover-Up' Allegations: "No Issues with the Four-Party Alliance"

"I did not intervene in the disciplinary process for the executive accused of sexual misconduct"
"My role in purchasing and production was requested by the 'four-party alliance'"

Shin Dongguk, chairman of Hanyang Precision and the largest shareholder of HanmiScience, has come forward to fully refute recent allegations that he protected an executive accused of sexual misconduct and improperly interfered in management. In particular, he drew a clear line with regard to the management control dispute sparked by this controversy, stressing both the stability of Hanmi Group’s professional management system and the continued strength of the four-party alliance.

At a press briefing held on the afternoon of the 24th at the Grand Hyatt Hotel in Yongsan-gu, Seoul, Chairman Shin said, “I have never been involved in executive appointments at any operating company other than HanmiScience, and I support Hanmi Pharmaceutical Group’s professional management system,” adding, “Professional managers are not the owners of the company but people entrusted with management by the shareholders, and it is not appropriate to regard a major shareholder’s interest in the management situation as improper interference.”

Shin Dongguk, chairman of Hanyang Precision and the largest shareholder of HanmiScience, is speaking at a press briefing held on the 24th at the Grand Hyatt Hotel in Yongsan-gu, Seoul. Photo by Jeong Donghoon

Previously, Park Jaehyun, CEO of Hanmi Pharmaceutical, in a media interview, released a recording of his conversation with Chairman Shin and raised suspicions that Shin had tried to cover up a sexual misconduct case involving an executive at Hanmi Pharmaceutical’s Paltan Plant. He had also raised suspicions for some time that Shin was improperly meddling in management.

Chairman Shin is the largest individual shareholder of HanmiScience, the holding company of Hanmi Pharmaceutical Group. As a junior from the hometown of the late founder Lim Sungki, he has continued to invest in the company since 2010. During the 2024 management control dispute, he played the role of a “casting vote” between the brother’s side and the mother-and-daughter side. He currently serves on the boards of both the holding company and the operating company. Together with Chairwoman Song Youngsook, Vice Chairman Lim Juhyun, and private equity fund manager La Defense Partners, he forms a four-party alliance that has served as the central axis of the group’s governance structure since the end of 2024.

Chairman Shin first strongly rebutted the controversy that he had protected the executive accused of sexual misconduct. He said, “I was not aware of the specific misconduct committed by the executive in question,” while also stating, “I did not intervene in or delay the disciplinary process related to the executive accused of sexual misconduct.” He particularly noted that the timing of the controversial recording was after the executive identified as the perpetrator had already submitted his resignation and left the company, and that the conversation took place during an unannounced visit by CEO Park, who had come to ask for support for his reappointment. Lawyer Jung Jinsu, representing Chairman Shin, added, “It is inconsistent with the facts to portray retrospective personal reflections, expressed after the disciplinary process had been completed and the person had left the company, as obstruction of the investigation or as protection.”

Shin Dongguk, chairman of Hanyang Precision and the largest shareholder of HanmiScience (left), and lawyer Lee Byungju (right) are speaking at a press briefing held at the Grand Hyatt Hotel in Yongsan District, Seoul, on the 24th. Photo by Jeong Donghun

He also drew a line against suspicions that he was seeking to strengthen his control through share purchases. Chairman Shin explained that the share acquisition from Coripohang and five other parties, disclosed on this day, was made in response to a request arising from the funding needs of former president Lim Jongyun’s side. Following this purchase, which totaled 213.7 billion won, the combined stake of Chairman Shin and Hanyang Precision has reached 29.83 percent. Shin said, “This is neither a consolidation of forces for a management control dispute nor an independent move,” adding, “It is nothing more and nothing less than responding to a request to help with former president Lim’s funding situation.”

Regarding the controversy over management interference, he countered that it fell within the legitimate oversight authority of a major shareholder. Chairman Shin said, “Professional managers are not the owners of the company but people entrusted with management by the shareholders,” and argued, “Offering opinions in areas where my expertise is needed, such as cost reduction and quality control at manufacturing sites, is an activity aimed at enhancing shareholder value.” He particularly pointed out that such production inspection activities were carried out with the consent of the four-party alliance, and said it is not appropriate to label them as improper interference.

Chairman Shin emphasized that the four-party alliance he has formed with Chairwoman Song Youngsook and Vice Chairman Lim Juhyun will remain firmly in place. He said, “The four-party alliance is a commitment to the stability and growth of Hanmi Pharmaceutical Group, and we will continue to play a role in providing checks and balances so that the board-centered professional management system functions properly in the future.”