Pharmaceutical Bio Shareholders' Meeting Day... Management Changes Anticipated

Prospects for Super Shareholder Meeting Days on 25th and 29th
Debut of 3rd-4th Generation Owners Including Boryung Pharmaceutical

Hanmi Pharmaceutical Headquarters.

[Asia Economy Reporter Lee Gwan-joo] Shareholder meetings of pharmaceutical and bio companies will kick off in earnest starting this week. This year's meetings are expected to bring winds of change, including management reshuffles at major companies and the debut of third-generation owners. Amid the COVID-19 pandemic, many companies are also set to issue substantial cash dividends thanks to strong earnings.

According to the pharmaceutical and bio industry on the 16th, shareholder meetings of pharmaceutical and bio companies will begin on the 18th of this month, starting with Yuhan Corporation, Hwanin Pharm, and Koryo Pharm. In particular, the 25th and 29th are expected to be ‘Super Shareholder Meeting Days.’ On the 25th, 25 companies including Celltrion, Kwangdong Pharmaceutical, Ildong Pharmaceutical, Boryung Pharmaceutical, Dongkook Pharmaceutical, Huons, Samjin Pharmaceutical, and Shinpung Pharmaceutical will hold their meetings, while on the 29th, 17 companies such as Samsung Biologics, GC Green Cross, Anguk Pharm, and JW Pharmaceutical will convene theirs.

This year’s meetings will see a number of changes in company leadership and management reshuffles. Hanmi Pharm and Hanmi Science, where the succession structure has become unclear, will hold their shareholder meetings on the 24th. Hanmi Science, the holding company of Hanmi Pharm, did not include the agenda for the reappointment of CEO Lim Jong-yoon as an inside director, resulting in Chairman Song Young-sook of Hanmi Pharm establishing a sole management system. Industry insiders view this as the succession competition among the three siblings Lim Jong-yoon, Lim Joo-hyun, and Lim Jong-hyun restarting from scratch. All three siblings will retain their positions as presidents of Hanmi Pharm.

At Dong-A ST, Chairman Eom Dae-sik and President Han Jong-hyun will step down from frontline management, and the agenda to appoint Kim Min-young and Park Jae-hong as inside directors has been submitted. They are expected to be appointed as CEOs through the board of directors afterward. Mr. Kim will oversee overall management at Dong-A ST, while Mr. Park will be responsible for research and development (R&D), strengthening expertise in their respective areas. President Han Jong-hyun will move to Dongwha Pharm. After being newly appointed as an inside director at the shareholder meeting on the 30th, he is expected to be appointed CEO by the board and take charge of the medical device and healthcare business divisions. Samjin Pharmaceutical is expected to shift to a sole CEO system under Choi Yong-joo. Among the CEOs Jang Hong-soon and Choi Yong-joo, whose terms expire this year, only CEO Choi was included in the reappointment list.

Third and fourth-generation owners actively entering frontline management also draw attention. Kim Jung-gyun, CEO of Boryung Holdings and grandson of Boryung Pharmaceutical founder Kim Seung-ho, is expected to be appointed as an inside director of Boryung Pharmaceutical at this shareholder meeting. If he is then appointed CEO by the board, Boryung Pharmaceutical will shift to a dual CEO system alongside the current professional manager, President Jang Doo-hyun. Handok has submitted an agenda to newly appoint Kim Dong-han, the third-generation descendant of the founder and director of the Management Coordination Office, as an inside director at the shareholder meeting. Dongwha Pharm has submitted an agenda for the reappointment of Vice President Yoon In-ho, eldest son of Chairman Yoon Do-jun, as an inside director. Vice President Yoon currently serves as Chief Operating Officer (COO).

Pharmaceutical companies with strong earnings are set to issue large cash dividends. Yuhan Corporation leads among major pharmaceutical companies with a total dividend amount of 26 billion KRW. GC Green Cross (22.8 billion KRW), Chong Kun Dang (11.2 billion KRW), and Kyungdong Pharmaceutical (10.9 billion KRW) will also pay dividends exceeding 10 billion KRW. Additionally, Samjin Pharmaceutical (9.8 billion KRW), Dongkook Pharmaceutical (8 billion KRW), JW Pharmaceutical (7.3 billion KRW), Bukwang Pharmaceutical (6.8 billion KRW), and Daewoong Pharmaceutical (6.6 billion KRW) will join in shareholder-friendly moves. Notably, Seegene, which gained attention for its COVID-19 diagnostic kits, plans to issue an additional cash dividend worth 20.6 billion KRW.

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