The 79-year-old drugmaker Samil Pharmaceutical is known for the children's fever reducer Brufen. Recently, Chair Huh Seung-beom, the third-generation successor, has been steadily expanding equity. In business circles, the view is that the move strengthens corporate succession.
Chair Huh Seung-beom is the grandson of the late Honorary Chair Huh Yong of Samil Pharmaceutical and the eldest son of former Chair Huh Kang. After graduating from Trinity University in the United States, Huh joined Samil Pharmaceutical's marketing department in 2005. Huh served as head of the policy office, head of management support, executive vice president, and president, and rose to chair in 2022.
Chair Huh Seung-beom has been steadily increasing equity through gifts and on-market purchases. Recently, former Chair Huh Kang gifted 200,000 shares, lifting Huh Seung-beom's equity from 8.23% to 9.15%. In the first quarter of last year and this year, Huh also raised equity into the 8% range from 7.83% via on-market purchases. A Samil Pharmaceutical official said the gift was made as part of business succession.
Former Chair Huh Kang currently holds 5.64% equity in Samil Pharmaceutical. Executive Director Huh Jun-beom, Huh Seung-beom's younger sibling, increased equity (1.54→1.56%) through on-market purchases last year. Including them, the largest shareholders and related parties hold 25.84% equity.
Samil Pharmaceutical was founded in 1947 by Heo Hee-ik and pharmacists. The late Honorary Chair Huh Yong, a former head of the National Institute of Health, acquired equity in 1974 and became chief executive. In the 1980s, the company launched Brufen and emerged as a powerhouse in the children's fever reducer market. It is also known for an essential amino acid supplement (Livact), a gastrointestinal motility regulator (Polibutin), and a glaucoma treatment (Monoprost).
The company is seeking sales growth by turning to overseas production. In 2022, it completed an ophthalmic contract development and manufacturing organization (CDMO) plant in Vietnam. On a 7,500-pyeong site, it can produce 330 million eye drops annually. The company believes producing in Vietnam, where labor costs are low, will secure price competitiveness.
The Vietnam plant has not yet begun full-scale commercial production. The plant requires GMP (good manufacturing practice) certifications by country. It received Vietnam certification in 2024 and is targeting Korean certification in the second half of this year. The plan is to begin operating the Vietnam plant while handling Korea-bound volumes as the certifications are obtained.
A Samil Pharmaceutical representative said, "The Ministery of Food and Drug Safety has been asked to schedule a GMP inspection for the Vietnam plant," adding, "Approval is generally expected within two to three months of the inspection."
Samil Pharmaceutical posted 210.3 billion won in consolidation sales last year. That was down 4% from a year earlier. It swung to an operating loss of 22.2 billion won. The company said its profit structure changed as it prepared for commercial production at the Vietnam plant. The industry is watching to see whether Samil Pharmaceutical, which is strengthening third-generation management, can secure a new growth engine to follow Brufen.