Kalem M Suddenly Appears Amid Ongoing Hanmi Pharm and OCI Merger Dispute

Im President Brothers Injunction Lawsuit
'Joint Litigation Auxiliary Participation' Application
Hearing Date Postponed Due to Third-Party Intervention
Speculation on Im President Brothers' Side
Possible Friendship with Representative Choi Yeonji

A small and medium-sized enterprise (SME) has intervened as a ‘litigation auxiliary participant’ in the legal dispute involving the Hanmi Group family over the merger between Hanmi Pharmaceutical Group and OCI Group. Concerned about potential infringement of rights due to the corporate merger, the SME joined the lawsuit, raising fears that the litigation could influence the merger process between Hanmi and OCI and cause disruptions. With a third party involved in the lawsuit, the first hearing date was postponed by about two weeks.

Lim Jong-yoon, President of Hanmi Pharmaceutical. Photo by Asia Economy DB

According to business and legal circles on the 5th, the SME Kaelum M recently applied for ‘joint litigation auxiliary participation’ in the injunction lawsuit filed by Hanmi Group presidents brothers Lim Jong-yoon and Lim Jong-hoon at the Suwon District Court to prohibit the issuance of new shares. ‘Joint litigation auxiliary participation’ is a procedure that allows a third party to participate as an auxiliary in a lawsuit when the ruling in that lawsuit could affect the third party’s rights, enabling them to protect their interests.

Legal and business sectors are questioning the sudden involvement of this company as an auxiliary participant. Judging solely by its business structure, the company has no connection to Hanmi Pharmaceutical or OCI Group. Kaelum M is a KOSDAQ-listed company engaged in aircraft leasing, rental, maintenance, sales, training, and manufacturing and sales of electric vehicle chargers. It is far removed from bio-pharmaceuticals or chemicals.

However, legal experts interpret that considering the purpose of the application, it is likely intended to side with the Hanmi Pharmaceutical presidents. If Hanmi Science executes a paid-in capital increase targeting OCI Holdings, Kaelum M is expected to suffer losses as a shareholder, making it probable that it joined the lawsuit supporting the Lim brothers. According to electronic disclosures, the company is not currently the largest shareholder of Hanmi Pharmaceutical. Nevertheless, given that the court accepted the ‘auxiliary participation’ application, the argument that it is a shareholder holding Hanmi Pharmaceutical Group stocks gains credibility.

There is also speculation about a possible friendship between the Kaelum M CEO and the Hanmi Group brothers. Choi Yeon-ji, eldest daughter of the Taehwa Group family and CEO of Dongseo Elec, became the CEO of Kaelum M through an extraordinary shareholders’ meeting in June last year. However, in this lawsuit, CEO Choi is not taking the forefront; instead, director Choi Seung-hwan is participating in the litigation. Business circles say they formed a friendship through music as a common interest.

Kaelum M’s involvement is expected to become a variable in the progress of the injunction lawsuit. The law firm Kim & Jeon is representing Kaelum M. Kim & Jeon is known as a law firm specializing in corporate management disputes, mergers and acquisitions (M&A), and capital market disputes. Because of this, some view that the firm’s involvement will strengthen the Lim brothers’ injunction lawsuit.

The 31st Civil Division of the Suwon District Court, which is hearing the case, postponed the first hearing originally scheduled for the 7th to the 21st after receiving Kaelum M’s auxiliary participation application. This is interpreted as the court needing time to review Kaelum M’s status and the nature of its interests in the case.

Meanwhile, despite the opposition from the Lim brothers, Song Young-sook, Chairwoman of Hanmi Group, expressed a firm commitment to the integration with OCI Group. In a recent conversation with internal executives, Chairwoman Song said, "(The integration push) is a decision to nurture Hanmi into a 100-year company," adding, "Although there have been some disagreements within the family, the integration of Hanmi Group and OCI Group will proceed without disruption." Regarding the injunction application filed by her two sons, she said, "I believe that the two sons opposing the integration will ultimately understand the greater purpose of this integration with a broad perspective."

Asia Economy contacted the law firm Kim & Jeon to inquire about the detailed background and circumstances of the litigation participation but received no response.

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