Chief executive Park Jae-hyun (57) of Hanmi Pharmaceutical, a professional manager, said regarding the conflict with the camp of major shareholder Shin Dong-kuk (76), chairman of Hanyang Precision Co., "I will stake my position as CEO to stop attempts to brand Hanmi as an organization that engages in wrongdoing."
Chairman Shin Dong-kuk is the largest individual shareholder, holding 29.8% equity in holding company Hanmi Science and 9.05% equity in Hanmi Pharmaceutical.
On Mar. 4, CEO Park held an internal town hall meeting at Hanmi Pharmaceutical's headquarters in Songpa-gu, Seoul, and explained his position on the recent controversy to employees. About 100 employees attended the town hall meeting.
Park directly rebutted various interpretations raised after ChosunBiz's report ([Exclusive] Hanmi Pharmaceutical CEO Park Jae-hyun: "The major shareholder Chairman Shin Dong-kuk blocked punishment of the executive accused of sexual harassment") and the counterclaims from Chairman Shin's side.
Park said, "I felt an intolerable personal anger at the major shareholder's side referring to me as 'someone who came to seek reappointment or ask for favors,'" adding, "On the day of the recording, I did not go to ask for my reappointment."
Chairman Shin Dong-kuk, a junior from the hometown of the late founder Chairman Lim Sung-ki of Hanmi Pharmaceutical, joined hands in 2024 with Lim's wife, Chairperson Song Young-sook, and Vice Chairperson Lim Ju-hyun, promising a professional management system and settling the family management rights dispute. But controversy followed as claims emerged that Shin was excessively interfering across management contrary to that promise.
In particular, over how to handle a sexual harassment case involving an executive late last year, claims arose that when Park pushed for heavy punishment of the executive identified as the perpetrator, Chairman Shin blocked it. Park presented as evidence a transcript containing the details of his meeting with Shin.
Shin then held a press briefing and argued, "I did not interfere in the disciplinary process for the executive accused of sexual harassment, and Park's purpose was to seek reappointment through solicitation." Park in turn issued a rebuttal.
Park said that during the approximately 40-minute conversation in the meeting with Shin when the recording was made, he asked the reasons for the unfair management interference and protested remarks treating Hanmi members like a corrupt organization by saying, "You shouldn't say that. I feel insulted." Park argued that the reappointment issue was mentioned only in the context of the conversation.
Park said, "I do not care whether I am reappointed at this shareholders meeting." He stressed, "However, I will do what I can to prove that branding Hanmi as a corrupt organization is not true." He added, "This is about protecting the honor of Hanmi Group and proving the life I have devoted myself to for 33 years."
Park posed three public questions to major shareholder Chairman Shin Dong-kuk.
First, he pressed for an explanation of how the major shareholder (Shin) called the perpetrator before the company's official investigation began and informed him in advance that an investigation was planned. Regarding the claim that the matter had already been concluded on the 9th, when the recording was made, Park countered that "the final action against the perpetrator was taken on Feb. 13," saying the facts differ.
He also took issue with the major shareholder comparing himself to a "president" and saying, "It's not that I bypassed the CEO; what's wrong with meeting and hearing from multiple people? Does the president work only with the prime minister?" Park pointed out, "Doesn't this run counter to the existing stance of maintaining a professional management system?"
Next, he expressed concern about changing the raw materials for the hyperlipidemia treatment "Rosuzet" to unverified Chinese-made supplies. He said, "Can you be certain there will be no problems even if we change the raw materials?" and added, "Questions are already being raised about whether patients can continue taking it and doctors can continue prescribing it."
Park invoked the "quality management" spirit of the late former chairman Lim Sung-ki, emphasizing, "This value is like a constitution that all shareholders, including employees, customers, and the major shareholder, must uphold together."
Park said, "I will stake everything on preserving and protecting this spirit through my official term," and asked employees, "Do not remain silent in the face of attempts to damage Lim Sung-ki's spirit." He said, "This conflict may appear to be a problem between management and the major shareholder, but at this rate, in six months, or at the longest in a year, it could become a problem for each member."