The ownership dispute within the Hanmi Pharmaceutical Group involving the owning family members is scheduled to be resolved at the shareholders’ meeting next month. The conflict persists between the mother-daughter duo -- Chairperson Song Young-sook, who is pushing for integration with the OCI Group, and President Lim Ju-hyun of Hanmi Pharmaceuticals -- and the brothers opposing it -- President Lim Jong-yoon of Hanmi Pharmaceuticals and Lim Jong-hoon, CEO of Hanmi Fine Chemical.
On Feb. 13, the two brothers, Lim Jong-yoon and Jong-hoon, stated, “Through the board of directors we are planning to replace the management and have President Lim Jong-hoon become the CEO of the holding company, Hanmi Science, while President Lim Jong-yoon will become the CEO of the subsidiary, Hanmi Pharmaceuticals, to directly engage in management.” Ultimately, the brothers and the mother-daughter duo will face off in a shareholder showdown at the general meeting next month.
The escalation of the conflict between the mother-daughter duo and the brothers is due to the integration with the OCI Group, led by Chairperson Song. Hanmi Science unanimously decided on integration with the OCI Group at the board meeting on Jan. 12. Regarding this matter, Chairperson Song expressed that there was significant financial pressure due to the 540 billion won (US$406.02 million) inheritance tax imposed after the passing of the late Chairman Lim Sung-ki.
However, the two brothers have expressed their opposition, stating that they had not been informed by the company or the family about the integration. They initiated their resistance. On Jan. 17, the brothers filed for an injunction to prohibit the issuance of new shares in response to Hanmi Science’s equity offering for integration with OCI. The hearing, originally scheduled for Feb. 7, has been postponed to Feb. 21. On the Jan. 24, they resolved their special relationship with Chairperson Song and implied isolation from the family.
On Feb. 8, the brothers submitted a shareholder proposal recommending candidates for directors of Hanmi Science. The proposal aims to present to the upcoming regular general meeting of Hanmi Science next month a resolution to appoint six new directors, including the two brothers, two additional non-executive directors nominated by them, and two independent directors. In other words, their intention is to return to management in an effort to thwart the integration with OCI.
The brothers stated, “The purpose of the shareholder proposal is not merely to enter the board of directors, but to clearly express our intention, in accordance with the wishes of the late chairman, to manage the Hanmi Pharmaceutical Group as representative directors of the holding company and the subsidiary.” They added, “The newly formed board of directors will enhance fairness and transparency in operations.”
Regarding the family conflict, Chairperson Song said on Feb. 1, “Although there have been some disagreements within the family, the integration between Hanmi Group and OCI Group will proceed smoothly.” She expressed her belief that “even the two sons who oppose the integration will eventually understand the significance of this integration from a macro perspective.