Son of Hanmi founder ousts mother as co-CEO as family feud continues

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Son of Hanmi founder ousts mother as co-CEO as family feud continues

Published: 14 May. 2024, 16:25

SARAH CHEA
[email protected]

Hanmi Pharmaceutical Group Chair Song Yeong-sook arrives at the company's headquarters in Songpa District, southern Seoul, to attend an emergency board meeting on Tuesday. Song was dismissed from the position of co-CEO of Hanmi Science at the meeting. [YONHAP]

Another round looms in a family feud over Hanmi Pharmaceutical Group, one of Korea's major pharmaceutical companies, after the founder's younger son ousted his mother as co-CEO of Hanmi Science.

Hanmi Science, the holding company of Hanmi Pharmaceutical Group, approved the dismissal of Song Yeong-sook, the wife of the company’s founder, the late Lim Sung-ki, from the CEO position, at an emergency board meeting called on Tuesday by co-CEO Lim Jong-hoon.

The decision leaves Lim as the sole CEO of Hanmi Science only 40 days after he and Song began managing the company as co-CEOs. Song will maintain her position as inside director until March 29, 2026.

The dismissal is reportedly due to a conflict regarding the executive reshuffle.

The dismissal signals another episode in the familial spat over Hanmi after the most recent development in late March as Lim and his older brother, Lim Jong-yoon, opposed a merger between Hanmi and OCI Holdings spearheaded by Song and her and the late founder's daughter, Lim Joo-hyun, the vice chairman of Hanmi Pharm Group.

The brothers and their allies prevailed and the younger brother was appointed as the co-CEO of Hanmi Science at the time.

Meanwhile, the founding family is also reported to be in conflict over how to cover their combined 500 billion won ($365.4 million) in inheritance taxes since their father died in August 2020. They have paid off some and are now left with around 264 billion won.

The two sons and ally Hanyang Precision Chairman Shin Dong-guk, who has a 12.15 percent stake in Hanmi Science, have been in negotiations with multinational private equity firms to sell stakes in the company.

New York-based private equity firm KKR and U.S. investment firm Bain Capital are the possible buyers, according to multiple local reports.

Hanmi Science shares closed at 34,050 won on Tuesday, up 1 percent from the previous trading session.

BY SARAH CHEA [[email protected]]