Hanmi Group faces new power struggle

Hanmi Group is witnessing a renewed power struggle as Chairwoman Song Young-sook and Vice Chairwoman Lim Ju-hyun teamed up with Hanyang Precision Chairman Shin Dong-guk, the largest individual shareholder outside of the Hanmi family, to regain control from the two brothers Lim Jong-yoon, Chairman of Coree Group, and Lim Jong-hoon, CEO of Hanmi Pharm.

Hanmi Science, the holding company of Hanmi Pharm, announced on Wednesday that Shin has signed a stock purchase agreement to buy a 6.5 percent stake (4,444,187 shares) from Song and her daughter.

Additionally, Shin entered into an agreement with the mother and daughter to jointly exercise their voting rights.

This strategic move signifies a shift in allegiance for Shin, who had previously supported the brothers. The combined holdings of Shin and the mother and daughter now total approximately 35 percent of the company.

The agreement also helps Song and her daughter Lim Ju-hyun secure funds to pay inheritance taxes following the passing of Hanmi Group's founder, Lim Sung-ki.

Legal firm Sejong, representing the parties, confirmed the transaction, stating that the collective ownership, including those of family members and allies, brings them close to a majority in Hanmi Science's voting rights.

The company has been at the center of controversy since January when Song and her daughter proposed a merger with OCI Group to secure funds for inheritance taxes, sparking opposition from Song's sons.

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 said the recent deal was likely due to a possible conflict that arose between Shin and the eldest brother, Lim Jong-yoon, who has held management control for over three months, due to the latter's failure to find a clear solution for inheritance tax issues.

Despite Lim Jong-yoon's initial confidence in attracting better investors to enhance shareholder value, no significant developments have emerged since he joined the board. Rumors of negotiations with specific private equity funds surfaced, but no deals were finalized.

In a joint statement, Song and Shin emphasized their commitment to sustainable growth and shareholder value, highlighting their shared vision for a robust corporate governance structure.

They also noted that Hanmi Group plans to overhaul its existing owner-centric management system and transition to a professional management system focused on on-site operations.

Through this restructuring, the group aims to urgently stabilize management by enhancing business competitiveness and efficiency.