[비즈한국] The management dispute at Hanmi Pharmaceutical128940 Group reached a turning point last month when the eldest son, Hanmi Science008930 executive director Lim Jong-yoon, sold his stake to the "Four-Party Alliance" (Shin Dong-gook, Song Young-sook, Lim Ju-hyun, and Killington Ltd.). The industry is closely watching whether the four-party alliance will reach an agreement with Hanmi Science CEO Lim Jong-hoon before the regular general shareholders' meeting in March. In her New Year's address, Chairwoman Song Young-sook emphasized, "Like a wise snake that sheds its skin to be reborn and grow larger, Hanmi Group must also break away from its old shell, move forward in earnest, and soar powerfully toward the global stage."
Character
Hanmi Pharmaceutical Group Chairwoman Song Young-sook was born on September 1, 1948, in Gimcheon, North Gyeongsang Province. She graduated from Sookmyung Women's University with a degree in Education in 1970 and majored in Photographic Design at the university's graduate school. She began her journey into photography through activities with the university's photography club, "Sookmihoe," and held her first solo exhibition, "Siblings," in 1969. In 2002, she established the Gahyun Cultural Foundation, and the following year, she opened the Museum of Photography, Seoul, the first museum in South Korea dedicated to photography, as its inaugural project. She was awarded the Order of Cultural Merit (Ok-gwan) in 2023 in recognition of her contributions to expanding the horizon of photographic culture by supporting the creative and exhibition activities of photographers.
In 1972, she married the late Lim Sung-ki, the founder of Hanmi Pharmaceutical Group. They have three children: eldest son Lim Jong-yoon, executive director of Hanmi Science (born 1972); second son Lim Jong-hoon, CEO of Hanmi Science (born 1977); and eldest daughter Lim Ju-hyun, vice chairwoman of Hanmi Science (born 1974).
Career
She served as an advisor for CSR at Hanmi Pharmaceutical starting in 2017 and was appointed group chairwoman in August 2020, shortly after the passing of her husband, the late Chairman Lim. Contrary to initial predictions that the eldest son would succeed to the leadership, Chairwoman Song was appointed to the post and began her full-scale management activities. Upon taking office, she stated, "Following the will of the late Chairman, I will continue to focus on new drug development without interruption, led by the current management team. We will become a powerhouse in pharmaceuticals by continuously enhancing relationships with our overseas partners." The company explained, "Chairwoman Song contributed to the group's growth while assisting the late Chairman, particularly by helping to resolve various difficulties that arose due to political and cultural differences between Korea and China during the establishment of Beijing Hanmi Pharmaceutical." Chairwoman Song continues to hold the position to this day.
Capability
Chairwoman Song is recognized for her active efforts in improving the group's culture. According to the group, the environment for gender equality has improved since her inauguration. The proportion of female employees at Hanmi Pharmaceutical's headquarters and research center is 55.7% and 45.1%, respectively, while the proportion of female executives is 23.1%, more than three times higher than the average for the top 500 domestic conglomerates (6.3%). In October 2023, Hanmi Pharmaceutical was awarded the Minister of Employment and Labor Award (Grand Prize) at the 8th Asia Gender Equality Index Awards in recognition of its high female employment rate and excellent work-life balance systems.
In 2020, she used her private funds to establish the "Proud Hanmian Award." Chairwoman Song personally selects the recipients from among group employees every year. To encourage front-line practitioners who have silently achieved results behind the scenes, executives are excluded from eligibility. At the time of the award's inception, she stated, "I established this award to express gratitude to the employees who have done their best toward the goal of becoming a pharmaceutical powerhouse and a global Hanmi. It also embodies my commitment to practicing warm management where the company accompanies employees in their lives and acts as a sturdy fence. I hope the values pursued by the Proud Hanmian Award will firmly take root as the new organizational culture of Hanmi Pharmaceutical Group."
She also achieved success in terms of sales. Based on data from the outpatient prescription analysis solution UBIST and the pharmaceutical market research firm IQVIA, Hanmi Pharmaceutical reached 1.0168 trillion KRW in combined inpatient and outpatient prescription sales as of 2023. In 2021, the company recorded 840.5 billion KRW in combined sales, and it has maintained the number one position in combined inpatient-outpatient prescription performance for three consecutive years. At a corporate presentation held last November, Hanmi Pharmaceutical said, "This year, thanks to the continuous growth of major products such as Rosuzet and Amosartan, Hanmi Pharmaceutical is expected to mark its 7th consecutive year as number one in outpatient prescriptions, 4th consecutive year as number one in domestic pharmaceutical distribution of prescription drugs, and hold the record for the most blockbuster products among domestic pharmaceutical companies."
Critical
Chairwoman Song faced a mother-son conflict during the process of pursuing a corporate integration with OCI010060 Group, a company specializing in materials and energy. During this process, operating profit decreased compared to the same period of the previous year, and the stock price fluctuated significantly. Her two sons actively opposed the merger pushed by Chairwoman Song and her daughter, Hanmi Pharmaceutical President Lim Ju-hyun, from the beginning, including filing an injunction to prohibit the issuance of new shares, arguing that third-party allocation of paid-in capital increases should be banned. At the time, Chairwoman Song's side explained, "In a way, it seems my children thought of me simply as a mother, not as a colleague who had worked with their father for 50 years leading Hanmi Pharmaceutical from a pharmacy to this point," adding, "Conflicts between children may exist, but I don't believe there should be conflicts between parents and children. (The decision to integrate with OCI) is not a subject for negotiation; it is about carrying on the will of the founder, the late Chairman Lim Sung-ki." However, she failed to gain her sons' understanding, which eventually escalated into a management dispute, causing nearly a year of chaos.
Challenges
With the eldest son, executive director Lim Jong-yoon, selling his stake to the Four-Party Alliance, the dispute has entered a closing phase. According to the Four-Party Alliance, they and Director Lim Jong-yoon reached an agreement through this sale to end the management dispute, stabilize the group's governance, and build a sustainable management system (centered on professional managers). They also decided to withdraw all civil and criminal lawsuits filed against each other. In a letter to shareholders last month, the Four-Party Alliance stated, "We have caused concern to our shareholders over the past year. As responsible major shareholders of Hanmi Group, we offer our sincere apologies," adding, "We will build a solid professional management system and repay our shareholders through integrity-based management and enhancement of corporate value."
Although the Four-Party Alliance has secured a 54% stake, a two-thirds majority of attending shareholders is required to dismiss second son CEO Lim Jong-hoon. The industry expects that the alliance will attempt to persuade CEO Lim before the regular shareholders' meeting in March to swiftly proceed with the transition to a professional management system. For Chairwoman Song, it is necessary to completely erase the concerns of the mother-son conflict and coordinate interests within the alliance. Meanwhile, regarding the agreement between the Four-Party Alliance and Director Lim Jong-yoon, CEO Lim Jong-hoon stated, "I was told that my older brother (Director Lim Jong-yoon) made the decision because he felt frustrated that continuing the dispute in this state would be problematic in many ways," adding, "I am in discussions with my brother."