The individual stakes held by the second-generation owners of Samjin Pharmaceutical are set to rise to the 4 percent range. Former Chairman Cho Eui-hwan, the company's founder, has decided to gift part of his holdings to his two sons. However, the combined stake of the largest shareholder's family remains unchanged, so no change is expected to the existing co-management system.
According to the Financial Supervisory Service's electronic disclosure system on the 13th, former Chairman Cho Eui-hwan will gift 270,000 common shares of Samjin Pharmaceutical that he holds to his eldest son, CEO and President Cho Kyu-seok, and his second son, Vice President Cho Kyu-hyung, on August 10, giving 135,000 shares to each.
Once the gift is completed, Cho's holdings will decrease from 839,322 shares to 569,322 shares, and his stake will fall from 6.30 percent to 4.28 percent. Meanwhile, the holdings of CEO Cho Kyu-seok and Vice President Cho Kyu-hyung will each rise from 425,000 shares to 560,000 shares, expanding their individual stakes from 3.19 percent to about 4.20 percent.
This gift is an internal transfer of shares within the owning family and does not affect the largest shareholder structure. The combined stake of the largest shareholder and specially related parties—including Cho, his spouse Kim Hye-ja, CEO Cho Kyu-seok and Vice President Cho Kyu-hyung—remains identical at 13.41 percent both before and after the gift. As a result, no change in the largest shareholder or in management control will occur.
Since Samjin Pharmaceutical was co-founded in 1968 by former Chairman Cho Eui-hwan and former Chairman Choi Seung-joo, the two families have maintained a co-management system. Currently, CEO Cho Kyu-seok and CEO Choi Ji-hyun serve as co-chief executives, while Vice President Cho Kyu-hyung serves as head of the sales division and Vice President Choi Ji-sun serves as head of the management division. The Choi family also holds a 10.33 percent stake, including specially related parties.
The industry views this gift as an internal reorganization of shares within the owning family rather than a management succession or a strengthening of control. In particular, since both the overall stake of the largest shareholder's family and the management system are maintained, no change is expected to the existing co-management structure.
