Hanmi Pharm Group Shifts to Professional Management System... "Committed to New Drug Development"

Song Youngsook Resigns as Chairwoman and CEO of Hanmi Pharmaceutical Group
Kim Jaekyo and Three Others Appointed as Inside Directors of Hanmi Science

Hanmi Pharmaceutical Group, which had been struggling with a management rights dispute, has taken its first step toward transitioning to a professional management system.

Hanmi Science, the holding company of Hanmi Pharmaceutical, held its regular shareholders' meeting on the morning of the 26th at the Hanmi Tower Building in Songpa-gu, Seoul, and appointed Kim Jae-kyo, Vice Chairman and Chief Operating Officer of Hanmi Science, as CEO.

The agenda to appoint Lim Joo-hyun, Vice Chairman of Hanmi Science and Hanmi Pharmaceutical, Shim Byung-hwa, former Executive Director of Samsung Biologics, and Kim Sung-hoon, former Executive Director of Hanmi Science, as inside directors was also passed. Song Young-sook, Chairwoman of Hanmi Pharmaceutical Group and the former CEO, resigned from the board citing personal reasons on the same day.

Kim Jae-kyo, the newly appointed CEO of Hanmi Science, is answering questions from the press on the 26th at the Hanmi Tower Building in Songpa-gu, Seoul. Photo by Choi Tae-won

Hanmi Science also appointed three outside directors: Choi Hyun-man, former CEO of Mirae Asset Securities; Kim Young-hoon, former judge of the Seoul High Court; and Shin Yong-sam, professor at Catholic University Seoul St. Mary's Hospital.

Hanmi Pharmaceutical Group plans to establish a governance structure where professional managers handle operations while major shareholders support them. At the Hanmi Pharmaceutical shareholders' meeting held on the same day, Choi In-young, head of Hanmi Pharmaceutical's R&D Center, was appointed as an inside director; Kim Jae-kyo as a non-executive director; and Lee Young-gu, representative lawyer of the law firm DaeRuk Aju, as an outside director, all as part of this plan.

Vice Chairman Kim Jae-kyo is a pharmaceutical expert who joined Yuhan Corporation in 1990 and oversaw management planning, global strategy, technology transfer, and mergers and acquisitions (M&A). After working at Janssen (now Innovative Medicines) in 2018, he joined Meritz Securities in 2021, leading the IND division that discovers and nurtures bio ventures.

Upon his appointment, he told reporters, "Since this is the first time for a professional management system, there will be both high expectations and concerns. Based on the philosophy of challenge and innovation of the late chairman, I will do my best in R&D and new drug development."

He added, "We will focus on how to prioritize R&D and consider efficiency while implementing our strategies."

Chairwoman Song Young-sook, who did not attend the shareholders' meeting, stated in a message, "Today marks the beginning of the 'New Hanmi' journey, solely dedicated to enhancing shareholder value. We are introducing an advanced professional management system unseen in Korea's corporate environment, and major shareholders will focus on their fundamental roles of supporting, managing, and supervising these managers as board members."

She emphasized, "There will be no more disputes within Hanmi Pharmaceutical Group. I believe the difficult times we faced were a strenuous stepping stone to soaring higher. With the unity of major shareholders, solid support from the board, and the free exercise of capabilities by professional managers, Hanmi Pharmaceutical Group will take off as a global company."

Meanwhile, Hanmi Pharmaceutical Group recently concluded its management rights dispute. The 'four-person alliance,' including Chairwoman Song Young-sook, and the 'brother faction,' consisting of Lim Jong-yoon, General Manager of Beijing Hanmi and chairman of the board, and Lim Jong-hoon, former CEO of Hanmi Science, had been engaged in a management rights battle triggered by inheritance tax issues for about a year. The dispute ended last month when the four-person alliance took control of both Hanmi Science and Hanmi Pharmaceutical's management rights.

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