In a move signaling a potential resolution to ongoing family disputes, Hanmi Science, the holding company of Hanmi Pharm, announced the appointment of Lim Jong-hoon as co-CEO alongside the current chairperson, Song Young-sook.

The decision came during a board meeting held at Hanmi headquarters in Songpa-gu, Seoul, Thursday.

The company has been at the center of controversy since January when Song and her daughter, Lim Joo-hyun, vice-chairperson of Hanmi Science, proposed a merger with OCI Group to secure funds for inheritance taxes, sparking opposition from Song's sons, Lim Jong-yoon, Chairman of Coree Group, and Lim Jong-hoon, Hanmi Fine Chemical CEO.

The dispute was concluded at the end of March when the mother-daughter duo's proposals for maintaining management rights were rejected at the annual shareholders' meeting, while the sons' proposals gained approval with significant support from minority shareholders.

Industry watchers see Lim Jong-hoon's co-CEO appointment as an effort by the two sons to mend the rift superficially, as any company decision will now require the approval of the mother and Lim Jong-hoon.

This strategic move, especially selecting Lim Jong-hoon over his brother, who had directly confronted the mother-daughter pair, aims to prevent further conflict and ensure smooth joint management.

This co-CEO structure also reflects the unresolved issue of inheritance taxes that has plagued the owner's family.

Following the death of founder Lim Sung-ki in 2020, the family was taxed 540 billion won ($398.9 million) on inherited shares of Hanmi Science. Despite paying half by last year, the family faced difficulties securing the necessary funds, leading to failed attempts at selling shares.

The immediate need to pay a portion of the inheritance tax this month likely prompted this temporary alliance.

Under Korean law, the tax authority can demand payment from any heir, potentially seizing assets even if one party has already paid in full.

While this co-CEO arrangement hints at reconciliation, the brothers are expected to lead significant business decisions.

In a parallel development, the board has also decided to hold an interim shareholders' meeting for Hanmi Pharm, likely positioning elder brother Lim Jong-yoon as the company's CEO.

Additionally, to enhance shareholder value, Hanmi Science resolved to retire about 1.56 million shares, which is about 2.2 percent of the company’s total shares, during the board meeting.

Retiring shares is a common strategy to increase per-share value by reducing the total number of shares available and enhancing shareholder value.

"Starting with this board meeting, Hanmi Group will continue its efforts to create a corporate culture where shareholders, employees, and customers can grow and develop together," a Hanmi Science official said. "We will surely show the new Hanmi that meets the expectations of our shareholders."