Hanmi Science family feud reignites as founder's ousted wife builds alliance

Hanmi Pharmaceutical Group Chair Song Yeong-sook arrives at the company's headquarters in Songpa District, southern Seoul, to attend a board meeting on April 4. [NEWS1]

A high-profile family feud at Hanmi Pharmaceutical Group took a new turn as the late founder’s wife, who was ousted from her top post, teamed up with a former ally of her sons to regain control of the conglomerate.

The rekindling of the conflict, which seemed resolved when the sons took control of Hanmi Science, drove up the holding company’s share price on Thursday.

Hanmi Pharmaceutical Group Chair Song Yeong-sook, the wife of Hanmi’s late founder Lim Sung-ki, and her daughter Lim Joo-hyun sold part of their stakes in Hanmi Science — 6.5 percent or 4.44 million shares — to Shin Dong-guk, according to Song’s legal representative. The announcement came after the market closed on Wednesday.

Shin, the chairman of Hanyang Precision and a friend of the late founder, held a 12.4 percent stake prior to the latest share acquisition. With the signing of the deal, he becomes the largest stakeholder in the company at 18.9 percent, while Song’s stake shrinks to 6.16 percent and Lim’s to 9.7 percent.

The mother-daughter duo also entered a voting agreement with Shin, solidifying the partnership.

Combined with shares held by other allies, Song has secured a 48 percent stake in Hanmi Science.

Her two sons, Lim Jong-hoon and Jong-yoon, as well as their allies, are estimated to hold about 45 percent of the company in total.

The latest turn of events was a drastic shift from earlier this year when Shin, who had been a key figure in the previous round of the family feud as well, sided with Song’s two sons against their mother.

In January, Song and her daughter announced a merger between Hanmi Pharmaceutical Group and OCI Holdings, a solar company, which faced opposition from the brothers. Jong-yoon and Jong-hoon won the vote at the shareholder meeting, effectively scrapping the merger, and the younger brother, Jong-hoon, was appointed as the co-CEO of Hanmi Science.

In May, Song was dismissed from her position as co-CEO of Hanmi Science by the company’s board, which has been controlled by the brothers.

The legal representation for Shin and Song said that the two decided to enter a partnership to “overhaul the current management system centered on the owner family, and shift to professional management.”

Kospi-listed Hanmi Science advanced 6.58 percent from the previous trading day to close at 33,200 won ($24.05) on Thursday.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]