Hanmi Science, the holding company of the Hanmi Group, said it would absorb its affiliate Hanmi Healthcare to lead the rapidly changing global healthcare market by acquiring a solid growth engine.

Hanmi Science held a board of directors meeting on Tuesday and announced that it had decided to proceed with a small-scale merger with its affiliate, Hanmi Healthcare. Hanmi Science plans to complete the merger process in early November after carrying out all the requirements for the merger.

Through this merger, Hanmi Science plans to build an opportunity to enhance investor trust and shareholder value by firmly practicing ESG (environment, social, governance) management, such as simplifying governance and strengthening compliance between affiliates through the merger with Hanmi Healthcare, according to Hanmi.

Hanmi Science also plans to take over healthy functional food, whole soymilk, and medical device businesses and use this as a new growth engine for the future.

“As the post-Covid-19 era is coming, the need to strengthen the capabilities of the global healthcare sector in a very sophisticated and systematic way has emerged, and the demands of the times for ESG management have also grown significantly,” a company official said. “The merger between the two companies will serve as a stepping stone for innovation that further enhances the future value for Hanmi group and firmly establish Hanmi Science as the group's holding company.”

Since its founding in 2000, Hanmi Healthcare has focused on the health-functional food business, such as developing, producing, and distributing whole soymilk with Hazard Analysis and Critical Control Point (HACCP) certification and medical device businesses, including anti-adhesion and hemostatic agents.