[비즈한국] The management dispute within Hanmi Pharmaceutical128940 Group has entered a new phase. While Hanmi Pharmaceutical CEO Park Jae-hyun has solidified his grounds for reappointment by receiving a non-indictment (no-guilty) decision regarding embezzlement and breach of trust allegations, the alliance between Shin Dong-gook, Chairman of Hanyang Precision and the largest shareholder of the holding company Hanmi Science008930, and Hanmi Science CEO Lim Jong-hoon is becoming a reality in the process.
Hanmi Pharmaceutical announced on the 10th that it received a non-indictment decision from the Seoul Metropolitan Police Agency regarding the allegations of embezzlement and breach of trust (violations of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes) filed against CEO Park and Park Myung-hee, Executive Director of the Domestic Business Division. Being cleared of the professional management corruption issues raised by Chairman Shin increases expectations for the reappointment of CEO Park, whose term expires on the 29th. Previously, Chairman Shin stated at a press conference on the 24th of last month, "I am not a legal expert, but even from a common-sense perspective, there are instances where professional managers make poor judgments."
With the non-indictment decision, the industry is paying close attention to the future moves of CEO Lim Jong-hoon, who was the one to file the complaint. On the 4th, CEO Lim Jong-hoon attended the unveiling ceremony of the bronze sculpture of the late founder, Chairman Lim Sung-ki, and took a commemorative photo alongside his mother, Hanmi Pharmaceutical Group Chairwoman Song Young-sook, and his sister, Hanmi Science Global Vice Chairwoman Lim Ju-hyun. Some have interpreted this as a sign that CEO Lim might align his future path with his mother and sister.
However, many argue that it is too early to declare the conflict resolved based on a single photo. The rift between CEO Lim Jong-hoon and CEO Park Jae-hyun runs deep, as evidenced by the eight mutual lawsuits and criminal complaints filed between November and December 2024, including the one that was recently dismissed. This has led to speculation that CEO Lim Jong-hoon might join forces with Chairman Shin, who seeks the departure of CEO Park. Although the four-party coalition of the holding company (Song Young-sook, Lim Ju-hyun, Shin Dong-gook, and La Defense) held an emergency meeting at Hanmi Tower on the 26th of last month to prevent a collapse, analysts suggest the shareholders' meeting this month could be restructured into a two-way battle between 'Song Young-sook, Lim Ju-hyun, and La Defense' versus 'Shin Dong-gook and Lim Jong-hoon'.
If the reappointment of CEO Park is brought as an agenda item at Hanmi Pharmaceutical's regular shareholders' meeting later this month, attention will focus on the voting battle between board members regarding the decision-making of the holding company, Hanmi Science. This is because the decision-making of Hanmi Science, which holds a 41.42% stake in Hanmi Pharmaceutical, plays a decisive role in passing agenda items.
Currently, the Hanmi Science board consists of 10 members. Excluding Vice Chairwoman Lim Ju-hyun, CEO Lim Jong-hoon, and Chairman Shin, the other seven members joined the Hanmi Science board during the ongoing management dispute that began in late 2023. Except for Bae Bo-kyung, CEO of Third Nature Experience, who entered the board alongside CEO Lim Jong-hoon in March 2024 as a non-executive director, it is not easy to categorize the other members' loyalties.
However, their support can be inferred from the voting behavior on the only agenda item that was rejected by the Hanmi Science board last year. During the board meeting on June 10th last year regarding investment in other companies, internal directors CEO Lim Jong-hoon and CFO Shim Byung-hwa, outside directors Choi Hyun-man (former CEO of Mirae Asset Securities) and Shin Yong-sam (Professor at Seoul St. Mary's Hospital, Catholic University of Korea), along with non-executive directors Chairman Shin and Director Bae, cast opposing votes, rejecting the agenda 6 to 4.
If these six members align their will again, they could sway the decisions of the Hanmi Science board. In effect, it is highly likely that things will proceed according to Chairman Shin's intentions. This means that even if the reappointment of CEO Park is put on the agenda, it may struggle to pass the hurdle of the shareholders' meeting.
An industry official said, "Since the regular shareholders' meeting must be convened within three months from the closing date, I expect a board meeting to deliberate on the agenda to be held within this week."