Hanmi Pharm "CEO Jaehyun Park to Retain President Position"

"Cases of Abuse of Representative Authority Enforced Without Principles and Procedures"

The management dispute between mother and daughter, and between siblings, at Hanmi Pharmaceutical has resurfaced. Hanmi Pharmaceutical immediately refuted the move by Lim Jong-hoon, CEO of Hanmi Science, to demote CEO Park Jae-hyun to executive director, calling it an unauthorized act without legal grounds. They also stated their intention to maintain Park Jae-hyun’s current position and scope of duties. As a result, the family management dispute that began earlier this year is expected to intensify further.

According to the pharmaceutical industry on the 29th, Hanmi Pharmaceutical established a Human Resources Team and Legal Affairs Team under the Management Support Division in the name of CEO Park Jae-hyun and appointed executives in charge. Then, an hour later, Lim Jong-hoon, CEO of the holding company Hanmi Science, demoted Park Jae-hyun from CEO to executive director and limited his supervisory duties from overall management to the Manufacturing Division.

In response, Hanmi Pharmaceutical immediately rebutted and declared its intention to maintain the CEO Park Jae-hyun system. Legally, the demotion of a subsidiary CEO by the holding company’s CEO is fundamentally invalid or potentially illegal. A Hanmi Pharmaceutical official stated, "It has no practical effect and is rather an example of abuse of representative authority forcibly carried out without principles and procedures," adding, "All personnel appointments by the holding company’s CEO are invalid, and the authority and position as CEO remain unchanged."

He continued, "So far, as confirmed in recent meetings with minority shareholders, CEO Lim Jong-hoon has expressed his intention to listen more to shareholders’ voices," and added, "It is questionable why the voices advocating a ‘professional management system’ by the major shareholder alliance holding about half of the shares are not being heard."

According to Hanmi Pharmaceutical, Shin Dong-guk, Chairman of Hanyang Precision, Song Young-sook, Chairwoman of Hanmi Pharmaceutical Group, and Vice Chairman Lim Joo-hyun, who collectively hold about half of Hanmi Science’s shares, also support Hanmi Pharmaceutical’s independent management and share the view that the measures taken were legitimate.

Additionally, the official emphasized, "Such unilateral personnel appointments by the holding company’s CEO over the subsidiary CEO violate current laws including the Commercial Act, infringing on the subsidiary board’s authority, and run counter to the trend of establishing advanced governance structures."

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