One year after Hanmi Pharmaceutical Group patched up the Oner family's management control dispute and formalized a professional management system, conflict between the largest shareholder and management is flaring up again.
One pillar of the conflict is Shin Dong-kuk, chairman of Hanyang Precision Co., who rose from the "key man" mediating the founder family's dispute to the "absolute power" holding 30% equity. On the other side stands Park Jae-hyun, a "true Hanmi man" with 30 years of experience, who took the helm of Hanmi Pharmaceutical with the confidence of the Oner mother and daughter, and is holding firm.
Hanmi Pharmaceutical's professional management system, which seemed to be settling at last, has escalated into an all-out confrontation between the largest shareholder and management in just a year, putting it to its biggest test.
◇ From a hometown junior of the late Chairman Lim Sung-ki to "absolute power" holding the group's fate
Chairman Shin Dong-kuk is a hometown junior (Tongjin-eup, Gimpo, Gyeonggi) and high school alumnus of the late Hanmi Pharmaceutical founder Lim Sung-ki. Their relationship, which began at a hometown gathering, deepened as they went on to jointly establish a scholarship foundation.
Shin emerged in earnest as Hanmi's "ally" during Hanmi Pharmaceutical's bid to acquire Dongsin Pharmaceutical in 2000. At the time, Shin transferred his equity to the late chairman Lim, cementing firm trust, and in 2010 he became a major shareholder by purchasing a 12.5% stake in holding company Hanmi Science for 42 billion won.
After the late chairman Lim's passing in 2020, Shin's presence evolved into the "key man" determining the direction of the group's governance structure. In the early stages of the Oner family's management control dispute that erupted in 2024, he sided with the elder and younger sons (the Lim Jong-yoon–Jong-hoon brothers), but after clashing over investment attraction methods, he abruptly switched to the camp of Chairperson Song Young-sook and Vice Chairperson Lim Ju-hyun, forming the so-called "four-party alliance."
Recently, by purchasing en masse even the equity held by the personal company of the eldest son, Lim Jong-yoon, co-CEO of Beijing Hanmi, he raised Hanmi Science's equity stake to 29.83% (including Hanyang Precision Co.'s holdings). He has effectively risen to an absolute power able to sway the entire group.
◇ "Professional manager" CEO Park Jae-hyun, a solid "true Hanmi man" for the mother and daughter
Clashes between CEO Park Jae-hyun, the professional manager appointed by Chairman Shin and the four-party alliance, intensified starting late last year.
Park is regarded as a "true Hanmi man" who has worked more than 30 years in research and production. He joined as a researcher at the Formulation Research Institute and became head of the Paltan plant and head of manufacturing, making him an expert in production and quality.
He earned the trust of the mother and daughter when he was appointed CEO in Mar. last year, as Vice Chairperson Lim Ju-hyun, together with La Défense Partners, was building a management system centered on the holding company's strategic planning office.
The spark for the conflict was a sexual harassment case involving an executive at the Paltan plant in Dec. last year. Park argued that appropriate personnel measures were not taken due to pressure from Chairman Shin. What began as a public interest report grew into a bigger controversy as suspicions arose that separating the perpetrator and victim and imposing discipline were insufficient.
Park also released a recording of a conversation with Chairman Shin. According to the recording, Shin defended the perpetrator, saying, "That person isn't someone who would rape a woman," and, cutting off Park's explanation of the need for discipline, rebuked him: "Say something that makes sense."
Park further claimed that Chairman Shin, a non-executive director, blocked the disciplinary action at the board. The executive left the company by voluntary resignation without separate disciplinary measures.
He also said Chairman Shin ordered the use of low-cost raw materials and a reduction in quality-related investments to cut costs. He raised suspicions that the executive identified as the sexual harassment perpetrator bypassed the CEO and followed Shin's instructions.
In response, Chairman Shin categorically denied at a press conference the allegations of shielding sexual harassment and interfering in management, and drew a line by saying that the possibility of reigniting the management control dispute was also an overinterpretation. However, with Park saying he would consider releasing additional recordings, the back-and-forth remains ongoing.
◇ March shareholders meeting likely to define the power landscape depending on Park's extension
But the fallout is not subsiding easily. Led by employees at Hanmi Pharmaceutical's Pyeongtaek and Paltan plants, executives and staff began a relay protest at the headquarters in Songpa-gu, Seoul, urging Chairman Shin to stop interfering in management and to apologize. Internal unrest has reached a peak.
Ultimately, the conflict between the two is expected to be settled at Hanmi Pharmaceutical's regular shareholders meeting next month. Coincidentally, the agenda will include extending Park's term as his current tenure expires next month.
Attention in the industry is focusing on what choice Chairman Shin, who has signaled a board shake-up with 30% equity as his weapon, will make. Some say the group's power landscape could shift again depending on whether Park, backed by internal employees, is reappointed.