In a pivotal shareholders' meeting of Hanmi Science on Thursday, the control tower within the Hanmi Group, the sons --Coree Group Chairman Lim Jong-yoon and Hanmi Fine Chemical CEO Lim Jong-hoon -- of the founding family secured a significant victory in the boardroom struggle against their mother and sister -- Hanmi Science Chairman Song Young-sook and Vice-Chairman Lim Joo-hyun.

The meeting, which was slated to start at 9 am on Thursday, faced over three hours of delay due to the slow tallying of proxy votes.

The key issue of contention was the election of board members, where two factions within the owner family pitted their nominees against each other.

On one side, there was a proposal backed by Hanmi Group's Chairman, Song Young-sook, and her daughter, Vice Chairman Lim Joo-hyun, recommending six nominees for the board with the intent of merging the company with OCI. On the opposing side, Lim Jong-yoon and Jong-hoon, the sons, suggested five candidates, firmly opposing the merger plans with OCI Group.

The election procedure involved a batch consideration of all 11 nominees, with the top six vote-getters to be appointed to the board.

The day's proceedings were marked by absence due to personal reasons of both Song Young-sook and Lim Joo-hyun.

The pre-vote process was not without controversy, with the Jong-yoon faction criticizing the lack of prior notification for candidate introductions as a low point for Hanmi Science's governance.

Additionally, concerns were raised about the legality of the meeting's conduct, led by Shin Seong-jae, Hanmi Science's executive director, whose status as a non-registered executive was contested by the son’s representatives.

Despite these challenges and a lengthy vote counting process, the outcome was decisively in favor of the sons’ camp.

Their slate of five nominees was approved, effectively blocking all six candidates supported by Chairman Song and Vice Chairman Lim.

Notably, the vote for Lim Joo-hyun's board position fell short, garnering support from only 48 percent of the present voting rights, while Lim Jong-yoon's proposal satisfied the majority requirements with 51.8 percent of the vote.

This shareholder meeting came against the backdrop of a contentious debate over the future direction of Hanmi Group, following the announcement of a merger plan with OCI Group earlier in the year.

The Lim brothers had been vocally opposed to the merger, seeking to alter the company's leadership to prevent it.

The voting result comes as a shock to many as even until the day before the shareholders' meeting, it seemed that the mother-daughter duo was gaining the upper hand, with the major shareholder, the National Pension Service (NPS), siding with them.

This backing from the NPS, which holds 7.66 percent in Hanmi Science, has allowed Chairman Song (holding 11.66 percent) and her eldest daughter, Lim Joo-hyun (holding 10.2 percent), the Vice-Chairman of Hanmi Science, to consolidate a favorable position.

Combining their direct family shares, those of allied special interest entities, and the support from the NPS, they now control an estimated 43 percent of the company's shares.

On the other hand, Lim Jong-yoon and Jong-hoon, along with their family and allies, hold around 40.57 percent of the shares.

Contrary to expectations that minor shareholders, who held about 20.5 percent of Hanmi Science’s shares, would not have a significant impact, the vote showed that they sided with the brothers.

The brother’s victory not only halts the proposed merger with OCI Group but also marks a crucial shift in Hanmi Science's governance.

The outcome of the vote and the ensuing shift in power dynamics have had a noticeable impact on the market, with Hanmi Science's stock experiencing a substantial rally.

As of market close on Thursday, the company's shares were up by 10.09 percent to 44,750 won ($33.24), signaling investor optimism following the resolution of the family's ownership dispute.

'Shareholders, top priority for Lim Jong-yoon'

After the annual general shareholders meeting ended, the two brothers came by the press room and thanked other major and small shareholder for siding with them and promised that such a tedious and extensive general shareholder meeting will never happen again. 

Emphasizing the significance of shareholders, Lim stressed that the shareholders who invest, even when there are no product needs, should come first.

"Our shareholders, as a unified team, have overcome numerous challenges, including legal and financial hurdles," Lims said. "This collective strength and determination were seen as a source of comfort and pride for both the company and its shareholders.

Lim promised that he and his brother would make a company that shareholders could be proud of, with a focus on maximizing shareholder value.

Lim also discussed the vision for the company to become a place where employees can work and learn freely, suggesting that this environment would naturally enhance the company's brand. 

He stressed the importance of establishing a new identity for the company that aligns with ESG principles and creates a nurturing, innovative workplace.

"I also wish that my mother and sister, who may be disappointed by the decision, could overcome our differences and work with us to return Hanmi Group back to its former glory."

Meanwhile, after the ballot results were announced, OCI Group immediately released a statement stating that it would completely scrap the merger plan. 

"We humbly accept the shareholders' decision and will halt the merger process," OCI Group said. "We wish for the best for Hanmi Group's future."