In the midst of a contentious battle for control over Hanmi Group, Lim Jong-yoon and Lim Jong-hoon -- the sons of the company founder and the late Lim Sung-ki -- appealed for shareholders' support and promised to elevate Hanmi Pharm into a powerhouse capable of generating 1 trillion won ($754.2 million) in annual net profit.

Speaking at a press conference on Thursday, Lim Jong-yoon, Hanmi Pharm CEO and Coree Group Chairman, articulated an ambitious strategy to achieve a market capitalization of 50 trillion won and annual net profit reaching 1 trillion won by engaging in the contract manufacturing of over 100 biopharmaceutical products.

He emphasized the potential within Hanmi to boost its current profit margin from below 10 percent to match or surpass the near 30 percent net profit margin achieved by leading domestic biopharma companies.

Lim emphasized that "people are Hanmi's assets," and if the two Lim brothers can convey their intentions at the upcoming shareholders' meeting on March 28, they will reunite people who have left Hanmi.

He highlighted that these individuals used to produce 450 chemical drugs over the past 50 years and will work together to produce 100 biopharmaceuticals.

Specifically, they aim to focus on contract manufacturing of biopharmaceuticals, adopting a model of producing a wide variety of products in small quantities to achieve the targeted net profit of 1 trillion won.

"We plan to build a bio-factory with investment funds and develop a differentiated company through a model including contract development organization (CDO) and contract research organization (CRO) services, aiming for a distinctive development specialization akin to Lonza," he said. "This approach would ensure the production of essential biopharmaceuticals in Hanmi's facilities even in the event of another pandemic."

Lim also explained that achieving a 1 trillion won net profit is not a pipe dream under his leadership, citing his achievements with Beijing Hanmi Pharm, where several drugs led the market in China under his leadership. He said Beijing Hanmi Pharm had an impressive 25 percent profit margin.

However, Lim did not go into detail on whether the profit margin was achieved during his tenure or after he left the Chinese offshoot.

Still, Lim attributed this success to the company's strong development capabilities and strategic product portfolio focusing on high-margin pharmaceuticals and that he would take similar measures with the Korean headquarters if he and his brother managed to take control.

Additionally, the Lim brothers proposed restructuring measures within the group to boost profitability, including consolidation of non-core departments to reduce costs and generate additional revenue.

"The restructuring will aim to enhance efficiency rather than reduce staff or scale back business operations," he said.

Lim Jong-yoon also revisited the idea of revitalizing the K-Hub Science Park project.

He recalled his efforts as the previous President of KoreaBIO to gather vaccine technologies during the pandemic when Korea had none and build the K-Hub Science Park, which, in his words, led to his unwilling resignment as the President of Hanmi Science.

"If I fail to achieve such plans, I promise to step down from my position immediately, Lim concluded.

Lim urges National Pension Service to step in

During the press conference, Lim also addressed issues surrounding the group's integration process with OCI Group.

Lim criticized the integration contract between Hanmi Science and OCI Holdings, pointing out legal and procedural flaws.

The deal, which involves share sales, in-kind contributions, and a rights issue, was labeled by Lim as essentially a merger and acquisition, despite being framed as individual transactions.

"Hanmi Group has failed to submit complete details during the injunction application hearing, suggesting the transaction's imperfection," Lim said. "This is not just about individual transactions or rights issues; it's about the entire contract for the merger between Hanmi and OCI, for which there are no contracts or documents to show."

Lim emphasized the need for a holistic view of the agreement.

The discussion also touched on the importance of stable ownership for companies, with Lim noting, "If someone cannot maintain their stake due to inheritance tax issues, they shouldn't be managing the business," he said. "The stability of the owner is crucial for a company."

A significant focus was on the National Pension Service (NPS), holding 5,358,732 shares (7.66 percent) of Hanmi Science as of the end of last year.

Given the 7.08 percent difference in shareholdings between the disputing parties, the NPS's decision could significantly impact the future of Hanmi Group's management rights.

Lim urged the NPS to exercise its voting rights through the stewardship code, a framework allowing institutional investors to influence corporate management.

"The integration contract between the group companies has legal issues," Lim said. "It's essential for an objective external institution to thoroughly review whether the integration process is legally sound."

Lim warned that merging OCI Holdings with Hanmi Science could leave unresolved disputes, potentially harming long-term stability.

The history

Meanwhile, the press conference was held amid a family dispute to secure control over Hanmi Science between the two sons and the mother, Hanmi Science Chairwoman Song Young-sook, and the daughter, Hanmi Science Strategic Planning Office Head Lim Joo-hyun.

The dispute flared up following the January announcement by Hanmi Science, the holding company of Hanmi Pharm, of its plans to merge with the energy materials group, OCI Group.

The brothers have since been vocal opponents of the integration, initiating legal actions to block the move, while the mother and the daughter stressed that the integration would resolve their inheritance tax problem and help boost R&D capabilities.

Lim Jong-yoon has expressed a desire to return to the helm of the company's management and has made a shareholder proposal last month for the nomination of his recommended candidates as new directors of Hanmi Science.

This proposal is set to be a key agenda item at the upcoming Hanmi Science annual general meeting on March 28.

The meeting will feature a showdown between the proposal from the two sons for the appointment of five new directors and the mother and daughter's proposal to appoint six new directors, highlighting the intense battle for control over the company's board composition.