Hanmi Pharm CEO Park retains position as eldest son fail to block independent management

Hanmi Pharm said its board of directors has rejected the proposal to appoint Executive Director Lim Jong-yoon as the sole CEO of the company. As a result, Park Jae-hyun will continue to serve as CEO.

The board also discussed a proposal to replace Park as chairman of the board at Hanmi's subsidiary, Beijing Hanmi Pharm, with the Chinese subsidiary's current CEO Yhim Hae-ryong, as suggested by Lim. However, this proposal was also voted down.

According to the company, all 10 board members, including Director Lim and CEO Park, attended the meeting, with two directors participating remotely via a conference call.

The proposal to replace the chairman of Beijing Hanmi was defeated in a six-four vote. Following this, Director Lim and another board member walked out of the meeting, claiming that CEO Park, in his capacity as board chair, had conducted the meeting in a biased manner, compromising its fairness.

Director Lim had previously accused CEO Park of violating company bylaws by appointing himself as chairman of Beijing Hanmi without board approval. Lim also alleged that Park caused economic losses and damaged the company's reputation by prematurely disclosing details of an internal audit related to questionable transactions between Beijing Hanmi and Coree Group, a Hong Kong-based company owned by Lim.

"A professional management system is a goal and vision that should be pursued not only by Hanmi but also by any company that aims to meet global standards," Kim Tae-yoon, an external director and head of the audit committee at Hanmi Pharm, said. "Today's board resolution is significant as it reinforces Hanmi's ability to achieve stable management and strengthen governance at a time when the company is setting record-high performance every quarter and striving to become a leading R&D-focused pharmaceutical company globally."

The board's decision to retain Park as CEO is expected to give momentum to his recently declared initiative for independent management of Hanmi Pharm, separate from its parent company, Hanmi Science.