The 59-year-old drugmaker GC Biopharma is bringing third-generation nephews into management under the lead of the second-generation chairman from the founding family. Heo Il-seop, chairman of GC (GC Holdings) and the fifth son of the late founder Heo Chae-gyeong, currently sits at the top of the governance structure.
Founder's second son the late former chairman Heo Yeong-seop's sons, Heo Eun-cheol, CEO of GC Biopharma, and Heo Yong-jun, CEO of GC, who are nephews of Chairman Heo Il-seop, are effectively running the company.
In addition, the chairman's two sons are each raising their profiles in finance and overseas business. In business circles, some say there could be changes to the third-generation succession structure that had formed around CEOs Eun-cheol and Yong-jun.
◇ Second-generation Chairman Heo Il-seop → GC Holdings → GC governance structure
To see GC's succession structure, go back to founder Heo Chae-gyeong. He had five sons and one daughter and founded GC and Hanil Cement. He passed GC to his second son, former chairman Heo Yeong-seop, and his fifth son, Chairman Heo Il-seop. After former chairman Heo Yeong-seop died in 2009, Chairman Heo Il-seop took over management control. Hanil Cement went to the first, third, and fourth sons.
Former GC vice president Heo Seong-su, the eldest son of former chairman Heo Yeong-seop, joined management in 2005 but stepped down in 2007. After that, the system led by former chairman Heo Yeong-seop's second and third sons, CEOs Eun-cheol and Yong-jun, took hold. In addition, five members of the founder's family currently work at the company, including Chairman Heo Il-seop's sons, GC Holdings CFO (chief financial officer) Heo Jin-seong and GC Global Business Division Allyglo Head of Team Heo Jin-hun.
The company's current governance is held by Chairman Heo Il-seop. As of the year-end business report last year, Chairman Heo Il-seop is the largest shareholder with 12.29% equity in GC Holdings. GC Holdings owns 50.06% equity of GC. The core links of the governance chain run Chairman Heo Il-seop → GC Holdings → GC.
He also holds equity in listed affiliates such as GC (0.57%), GC Wellbeing (0.48%), GC Medical Science (10.09%), GC Cell (0.19%), and GC Genome (2.15%).
Third-generation members also hold company equity. CEO Heo Eun-cheol owns 2.68% of GC Holdings, 0.25% of GC, 1.69% of GC Wellbeing, and 3.32% of GC Genome, among others. CEO Heo Yong-jun (2.96%), CFO Heo Jin-seong (0.78%), and Head of Team Heo Jin-hun (0.72%) all hold GC Holdings equity.
◇ From uncles and nephews to cousins… where the third-generation succession is headed
So far, CEO Heo Eun-cheol, the second son of former chairman Heo Yeong-seop, is seen as a step ahead in the succession picture. However, Chairman Heo Il-seop's eldest son, CFO Heo Jin-seong, also holds a key post overseeing finance. The second son, Head of Team Heo Jin-hun, is leading Allyglo's overseas business and delivering results.
In business circles, some say it is too early to pin down the third-generation successor. Depending on how well they prove their management capabilities going forward, the succession structure could be decided flexibly.
A GC official said, "Since there is a second-generation chairman at present, nothing has been decided regarding the third-generation succession."
GC is also seeing a rebound in results. GC's consolidation sales last year were 1.9913 trillion won, up 19% from a year earlier. Operating profit was 69.1 billion won, up 115% from the previous year.
The core growth driver is the blood product (immunoglobulin) Allyglo. Blood products are medicines made by separating various proteins in plasma by component. Allyglo is an immunodeficiency treatment that received approval from the U.S. Food and Drug Administration (FDA) at the end of 2023. It posted 150 billion won in sales in the United States last year.
Allyglo is currently an intravenous injection formulation, but the company plans to develop the blood product as a subcutaneous injection formulation. After entering phase 3 clinical trials next year, if there are no particular issues with the results, it is aiming to file with the FDA in 2031.
Subcutaneous injections are convenient because patients can self-administer without visiting a hospital. Administration time is also short, so the market is likely to expand, and it is advantageous in terms of profitability.
A GC official said, "Most global competitors have secured subcutaneous injection formulations," adding, "After securing patients initially with intravenous injections, it is possible to switch to subcutaneous injections for a 'lock-in effect.'"
Lee Ji-won, an analyst at Heungkuk Securities, said, "It is judged that Allyglo has settled into the U.S. market," and explained, "There is potential for portfolio expansion through the development of subcutaneous injections."