Court Dismisses Injunction to Prohibit Hanmi Pharm Group's New Share Issuance

Im Jong-yoon and Im Jong-hoon, the eldest and second sons of the founder of Hanmi Pharmaceutical Group, opposed the merger between Hanmi Pharmaceutical Group and OCI Group and filed an injunction to prohibit the issuance of new shares, but the court did not accept it.

On the 26th, the Civil Division 31 of Suwon District Court (Presiding Judge Jo Byung-gu) dismissed the injunction application filed by the Im brothers against Hanmi Pharmaceutical Group to prohibit the issuance of new shares. The court stated, "Although there is suspicion that Chairman Song Young-sook of Hanmi Pharmaceutical Group and others aim to strengthen management or control rights, considering that the investment company search and other long-term reviews have been conducted over a period of two years, the board of directors' management decision should be respected."

Suwon District Court. Photo by Suwon District Court website

It added, "Considering the debtor's borrowing scale and debt ratio before the stock transaction contract in this case, the demand for funds for new businesses, especially investments required for new drug development and patents, it can be seen that there was a necessity for operational fund procurement, financial structure improvement, and strategic capital partnership to establish a long-term research and development (R&D) investment foundation."

The Im brothers previously argued during the injunction hearing that "this issuance of new shares is not for the company's management purposes but for the private interests of certain individuals, thus infringing on the rights of new share subscription and shareholders, making it invalid."

Meanwhile, Hanmi Group announced the day before that it had dismissed Im Jong-yoon and Im Jong-hoon from their positions as president of Hanmi Science and president of Hanmi Pharmaceutical, respectively. Hanmi Group stated, "The two presidents caused disputes over important resolutions of the Hanmi Science board of directors and inflicted irreparable damage to the company," adding, "They continuously engaged in acts that damaged the company's honor and credibility, leading to their dismissal." Im Jong-yoon and Im Jong-hoon, the two sons of the late Chairman Im Sung-ki, founder of Hanmi Pharmaceutical, are engaged in a management rights dispute with their mother, Chairman Song of Hanmi Pharmaceutical Group, and their sibling, Im Joo-hyun, head of the Strategic Planning Office, over the merger between Hanmi Group and OCI Group.

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