Hanmi Pharmaceutical Faces Uncertainty Again as Attention Turns to Lim Jonghoon

Chairman Shin Dongguk Holds Majority Stake
All Eyes on Boardroom and Shareholder Meeting Power Struggle

The governance structure of Hanmi Pharmaceutical Group is shifting from a dispute among the founder's family members to a system dominated by its largest shareholder, Shin Dongguk, Chairman of Hanyang Precision. In the midst of this transition, the shares held by Im Jonghoon, CEO of Hanmi Fine Chemical and the late founder Im Sungki's second son, have emerged as a potential casting vote, drawing considerable attention.

As of February 27, a look at the major shareholding structure of Hanmi Science, the holding company of Hanmi Pharmaceutical Group, shows that Chairman Shin Dongguk has secured an overwhelming 29.83% stake, including Hanyang Precision's 6.95% stake, in addition to his own 22.88%. He was already the largest shareholder with a 23% stake, but recently widened the gap by purchasing an additional 6.45%-including shares from the founder's eldest son, Im Jongyoon, Chairman of the Cory Group-for 217.3 billion won. The combined stake of the mother-daughter side-Song Youngsook, Chairwoman of Hanmi Pharmaceutical Group (3.84%), and Im Juhyun, Vice Chairwoman of Hanmi Pharmaceutical Group (9.15%)-along with other relatives and foundations, stands at 24.25%.

The market views these changes in shareholding as signaling the potential collapse of the “four-party alliance” (Shin Dongguk, Song Youngsook, Im Juhyun, and La Defense), which was formed during the management rights dispute in 2024. At a recent press conference, Chairman Shin Dongguk reiterated his principle that the professional management system and the four-party alliance would be maintained for Hanmi Pharmaceutical. However, he left room for change, saying that whether to extend the four-party alliance contract would be decided in due course.

During the 2024 management dispute over Hanmi Pharmaceutical, Chairman Shin formed the four-party alliance with Chairwoman Song Youngsook, Vice Chairwoman Im Juhyun, and private equity fund manager La Defense Partners (Killington LLC), standing against Chairman Im Jongyoon and CEO Im Jonghoon. Chairman Shin’s decision to shift alliances from the brothers’ side to the current alliance played a decisive role in establishing the existing management structure.

After resolving the management dispute, the four-party alliance emphasized a professional management system. The major shareholders did not participate directly in management, but instead supported and planned future growth strategies from the background, pursuing a model similar to that of global pharmaceutical giant Merck. However, as the company built an executive team centered on professional managers, cracks began to appear in the alliance. According to an industry insider, "There were frequent conflicts between Hanmi Pharmaceutical's management and Chairman Shin’s associates regarding workforce reduction, R&D, and quality control. Chairman Shin also opposed the new business for senior care proposed last year, which has put the four-party alliance on the path to collapse."

Amidst these developments, CEO Im Jonghoon, who still holds a 5.09% stake, has emerged as the potential casting vote that could determine the future direction of management rights. If Im Jonghoon’s shares are counted as friendly shares on the mother-daughter side, the gap with Chairman Shin’s side shrinks to just 0.54%. Whereas Chairman Shin acted as a balancing force between the mother-daughter and brothers’ factions during the 2024 dispute, now Im Jonghoon’s choice has become the key variable that could determine the control of management rights.

The first critical juncture in the battle for management control will be the regular shareholders’ meeting of Hanmi Pharmaceutical, the core operating company, scheduled for next month. At this meeting, decisions will be made regarding the replacement or reappointment of four board members, including Hanmi Pharmaceutical CEO Park Jaehyun, whose terms are expiring. Whether Hanmi Pharmaceutical will undergo organizational renewal depends on how Hanmi Science, which holds 41.42% of the voting rights, exercises its votes. With the power struggle between the Shin Dongguk and mother-daughter factions intensifying within the Hanmi Science board, the side that CEO Im Jonghoon-himself a board member-chooses to support will be pivotal in shaping the next executive team for Hanmi Pharmaceutical.

This content was produced with the assistance of AI translation services.