'In the Fog' Hanmi Pharm Group Succession Battle... Three Siblings Enter Fierce Competition

Group Holding Company Hanmi Science and Hanmi Healthcare Merge
President Lim Jong-hoon Appointed... Both Siblings Serve as Presidents of Hanmi Science

Hanmi Pharmaceutical's Presidents Jong-yoon Lim (from left), Joo-hyun Lim, and Jong-hoon Lim, the three siblings.
[Photo by Hanmi Pharmaceutical]

[Asia Economy Reporter Lee Gwan-ju] Following the passing of the late Chairman Lim Sung-gi, founder of Hanmi Pharmaceutical Group, the succession competition within the group has reignited as Chairwoman Song Young-sook, his widow, took full control, returning the succession battle to square one. With Hanmi Science, the group's holding company, merging with Hanmi Healthcare, the second son, Lim Jong-hoon, CEO of Hanmi Healthcare, became the last among the three siblings of the owner family to be appointed president of the holding company. Meanwhile, the eldest son, Lim Jong-yoon, president of Hanmi Science, has increased his shares, narrowing the gap with Chairwoman Song.

Succession Battle, Once Solidified Around Eldest Son, Returns to Square One

According to the pharmaceutical industry on the 16th, Hanmi Science completed the merger process with Hanmi Healthcare earlier this month and appointed Lim Jong-hoon, who led Hanmi Healthcare, as president of Hanmi Science. President Lim Jong-hoon is expected to oversee the healthcare business division of Hanmi Science and drive related business operations. Hanmi Science also revealed plans to increase annual sales in the medical device sector, currently around 20 billion KRW, to over 50 billion KRW.

With the eldest son Lim Jong-yoon and eldest daughter Lim Joo-hyun already involved in the holding company's management, the addition of the youngest son Lim Jong-hoon has intensified the succession competition. During Chairman Lim Sung-gi's lifetime, the succession was largely settled around the eldest son, Lim Jong-yoon. However, in March, Lim Jong-yoon stepped down as CEO of Hanmi Science, and with Chairwoman Song becoming the sole representative, the succession battle effectively reset. Lim Joo-hyun also resigned from her position as an inside director of Hanmi Science.

At that time, the shareholding differences among the three siblings were not significant. As of the first quarter of this year, Hanmi Science's shares were held by Chairwoman Song at 11.21%, Lim Jong-yoon at 7.88%, Lim Joo-hyun at 7.69%, and Lim Jong-hoon at 7.27%. All three siblings maintained their positions as presidents of Hanmi Pharmaceutical, participating in company management and demonstrating their capabilities. Lim Jong-yoon was responsible for future strategy, Lim Joo-hyun for global strategy and human resource development (HRD), and Lim Jong-hoon for management planning and chief information officer (CIO) roles respectively.

Exterior view of Hanmi Pharmaceutical headquarters. [Photo by Hanmi Pharmaceutical]

Three Siblings Establish Their Own Domains and Take Aggressive Actions

The three siblings are showing aggressive moves in their respective roles. Lim Jong-yoon is reportedly focusing on normalizing the management of Dx&Vx, where he is the largest shareholder. Dx&Vx is working on business restructuring and microbiome-based research and development, with cumulative sales of 21.7 billion KRW and operating profit of 1.5 billion KRW in the third quarter, expecting record-high performance this year. Additionally, by acquiring Korea Biopharm for 15 billion KRW, the company has officially entered the contract development and manufacturing organization (CDMO) sector. Lim Jong-yoon is also continuing aggressive investments through the new business incubation specialist company, Core Group, which he leads. Core Group recently announced its intention to invest 200 billion KRW in the Pohang Convergence Technology Industrial Complex to develop the 'K Hub Science Park.' The growth of Beijing Hanmi Pharmaceutical is also expected to be a positive factor for Lim Jong-yoon.

Lim Joo-hyun was appointed as a director of Spectrum, Hanmi Pharmaceutical's U.S. partner, in March and is leading the global commercialization strategy for key new drugs. Notably, in September, Hanmi Pharmaceutical's neutropenia treatment biopharmaceutical 'Rolontis' (U.S. product name Rolvedon) received FDA approval for marketing in the U.S. This is the first biopharmaceutical produced in a domestic factory to enter the U.S. market and marks the sixth FDA approval for a Korean new drug. Lim Joo-hyun is known to have played a significant role in this achievement.

Lim Jong-hoon has demonstrated his capabilities by holding multiple CEO and director positions within Hanmi Pharmaceutical Group affiliates. In addition to the recently merged Hanmi Healthcare, he leads Hanmi Ventures, established to support emerging bio-ventures, and Japan Hanmi, strengthening their foundations. He also serves as a director of 'Online Pharm,' an online pharmaceutical distribution mall, and 'JVM,' a company specializing in pharmacy automation equipment. Depending on his performance in the healthcare business, which Hanmi Pharmaceutical Group has identified as a future growth engine, there is speculation that he could become a 'typhoon eye' in the future.

Succession Battle Remains 'Foggy' for the Time Being

Within the industry, attention still centers on the eldest son, Lim Jong-yoon, regarding the succession battle of Hanmi Pharmaceutical Group. Although he stepped down from the holding company CEO position and is working to prove his management capabilities again, he has a longer history of involvement in the group's management compared to his siblings and was once recognized as the undisputed successor of Chairman Lim Sung-gi. The timing of their appointments as presidents of Hanmi Pharmaceutical also shows a significant gap: Lim Jong-yoon in 2009, and Lim Joo-hyun and Lim Jong-hoon last year. However, both Lim Joo-hyun and Lim Jong-hoon have steadily grown by proving their performance within Hanmi Pharmaceutical, earning recognition for their capabilities. Given the group's favorable performance, there is no pressing need to disrupt the current management style and take on risks, so the current system is expected to be maintained for the time being. Hanmi Pharmaceutical Group stated, "We plan to continue operating the group with Chairwoman Song at the center, alongside the three siblings and professional management."

However, this does not mean there are no potential conflicts. With Hanmi Science completing the absorption merger with Hanmi Healthcare, the owner's family's control has further strengthened. This is because the 6.43% stake in Hanmi Science previously held by Hanmi Healthcare was distributed to shareholders. As of the 14th of this month, Chairwoman Song holds the largest share at 12.56%, but Lim Jong-yoon has increased his stake to 12.16%. The gap with Lim Joo-hyun (7.20%) and Lim Jong-hoon (8.91%) has widened. However, this reflects borrowings made to pay inheritance taxes following Chairman Lim Sung-gi's passing, and when considering actual shares held, the differences among the three siblings are not significant. Based on actual shares, Lim Jong-yoon holds 9.91%, Lim Joo-hyun 10.19%, and Lim Jong-hoon 10.56%.

Many domestic pharmaceutical companies have already entered second- and third-generation management. An industry insider said, "Whether the owner family directly manages or separates management and ownership through professional managers, there is always a clear successor. Currently, a co-management system is maintained, but at some point, management succession will inevitably take place."

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