Change is brewing in the leadership structure of HUGEL, a beauty medical bio corporations.
According to ChosunBiz reporting compiled on the 15th, Chair Cha Suk-yong, who has served as the head of HUGEL since 2023, is expected to leave the company when his term ends in March next year.
Chair Cha Suk-yong is also well known as a long-serving CEO who led LG H&H for 18 years. Cha, who is currently serving as an advisor to LG H&H alongside HUGEL, is said to be stepping down in early next year around the same time.
Recently, Cha sold off a large portion of his HUGEL shares. From last month through the 2nd of this month, he sold a total of 15,000 HUGEL shares in six on-market transactions. The exercise date for stock options granted in March 2023 came on May 14, making sales possible. The amount totals 3.83 billion won.
A source in the biotech industry said, "It appears Cha is disposing of his holdings ahead of voluntary retirement."
Regarding Cha's large share sale, a HUGEL official emphasized that it was "merely a transaction in line with the chair's personal financial planning" and "a decision unrelated to the company's performance outlook or business direction."
HUGEL's flagship products are botulinum toxin products and fillers. HUGEL posted record results last year with revenue of 373 billion won and operating profit of 166.3 billion won.
With Cha set to choose retirement instead of another term in March, changes are also expected on HUGEL's board. Cha has served as chair of the board.
According to a person familiar with HUGEL's internal affairs, Carrie Strom, who joined in October, is expected to newly join the board next year as global CEO. HUGEL's board currently has seven directors—five other non-executive directors and two outside directors—and except for the outside directors, the remaining directors are all from GS Group and CBC Group.
In September, HUGEL hired CEO Jang Doo-hyun, a former professional manager at drugmaker Boryung, followed in October by CEO Carrie Strom as global CEO. From May 2020 to February this year, Strom served as senior vice president at U.S. pharmaceutical company AbbVie and as global president of aesthetics at Allergan.
The company explained that the rationale for hiring the two CEOs was to build a two-top system aimed at "joint growth at home and abroad."
Some in the market view this as groundwork for CBC Group, the largest shareholder, to push for a sale of control of HUGEL.
HUGEL's largest shareholder is Aphrodite Holdings, which owns 43.53% equity. Aphrodite Holdings is a special purpose company (SPC) established in 2021 to acquire control of HUGEL being sold by Bain Capital, with shareholders including Singapore-based global healthcare private equity fund CBC Group, GS Group and SPC IMM Investment funded jointly with domestic private equity IMM, and Abu Dhabi sovereign wealth funds Mubadala Investment. At the time, it acquired control of HUGEL for about 1.7 trillion won.
On this, HUGEL drew a line, calling it a "leadership reshuffle to strengthen global business." Regarding Cha's retirement, the company said, "Board resolution procedures remain, and it will be decided through the board."
An internal HUGEL source said, "The role-splitting structure between the Korea CEO and the global CEO may look unusual now, but once Chair Cha's term ends early next year and CEO Carrie Strom joins the board, the division of roles will become clearer." The company emphasized, "Next year we plan to pursue global business even more aggressively."