Hanmi Pharmaceutical Group, which appeared to have stabilized after ending a family management dispute, is now embroiled in conflict between its largest shareholder and professional management.
Park Jae-hyun, CEO of Hanmi Pharmaceutical, issued an appeal to all employees claiming that Shin Dong-kook, chairman of Hanyang Precision and the company's major shareholder, has improperly blocked the CEO's exercise of authority. Critics note this directly contradicts the spirit of recent Commercial Act amendments designed to prevent major shareholders from acting unilaterally.
According to investment banking industry sources on the 23rd, Park stated in a message to employees on the 20th: "I have directly and indirectly requested that a certain major shareholder provide responsible advice and discussion based on the essence of the pharmaceutical industry. However, those efforts have come back as criticism against me, and I feel pressure on my fully granted authority as CEO."
The "certain major shareholder" is understood to refer to Chairman Shin.
Park continued: "I am well aware of the significance and influence that a major shareholder has in a company. However, I believe there are values that must be upheld above that." He added, "Within my authority, I will fulfill my responsibility to ensure Hanmi maintains its identity and moves in the right direction."
Chairman Shin has reportedly repeatedly obstructed Park's exercise of authority. Most notably, Shin allegedly instructed Park last year to switch to lower-cost raw pharmaceutical materials. Park opposed this, citing concerns about using unverified low-cost materials. When Park refused, Shin reportedly pushed through the material change through his associates.
Evidence of management interference also emerged in a sexual misconduct case. Shin allegedly vetoed decisions that Park had made objectively through a committee process. In a recent case involving executive "A," Park imposed disciplinary action through a disciplinary committee, but A reportedly told colleagues that "Chairman Shin told me to return." A Hanmi Pharmaceutical official said, "Shin's associates have consistently said 'Chairman Shin said it's okay' when not following CEO Park's instructions."
Chairman Shin holds 23.38% of shares in Hanmi Science, the holding company, and serves as non-executive director of both Hanmi Science and Hanmi Pharmaceutical. During the 2024 management dispute between mother-daughter and son factions, Shin, who held approximately 10% of shares, emerged as the key figure to end the conflict and acquired shares from the mother-daughter side through a shareholder agreement. At that time, Shin, Chairman Song Young-sook, and Vice Chairman Lim Ju-hyun signed a shareholder agreement committing to establish an advanced governance structure with management delegated to professional executives.
Hanmi Pharmaceutical employees held a picket protest in the headquarters lobby on this day, demanding Shin's resignation for intervening in management like an owner. They also issued a statement demanding a formal apology to victims and employees, cessation of management interference, and called for the board to establish checks and balances.
Critics point out that such management intervention by Shin, a non-executive director at Hanmi Pharmaceutical, contradicts the intent of the revised Commercial Act. The law amended last year limits voting rights of the largest shareholder and related parties to 3% when appointing audit committee members and introduced measures to check unilateral management by major shareholders through activation of cumulative voting. The intent is to prevent arbitrary control by specific major shareholders and separate ownership from management.
An investment banking industry official emphasized: "Directly participating in management as a shareholder while infringing on professional management's authority has illegal elements. One should take on the title of executive director and participate in management while bearing responsibility."
Chairman Shin's side responded to these allegations by stating, "The management interference claim is a distorted assertion by CEO Park."
