The presence of Kim Dong-han, executive director of planning and coordination at Handok and third-generation founder, is growing at the pharmaceutical company known for the anti-inflammatory pain patch "Ketotop" and the digestive aid "Festal." He moved to the forefront of management as head of the subsidiary Handok Healthcare, launched last year.
Kim Dong-han, the eldest son of Handok Chairman Kim Young-jin, was born in 1984 and has recently expanded his management role by taking charge of new businesses such as health supplements and Digital Healthcare. In business circles, some say, "This is similar to Chairman Kim honing his business sense in the management coordination office." Chairman Kim inherited management control after being promoted to vice chairman in his 40s and chairman in his 50s.
◇ Third-generation founder → Y&S International → control of Handok
Handok was founded in 1954 by the late Honorary Chairman Kim Shin-kwon. Chairman Kim Young-jin, son of Honorary Chairman Kim, joined Handok in 1984 as Director General of the management coordination office. He rose through director, senior managing director, executive director, executive vice president, president, and vice chairman to become chairman in 2006. He now leads the company as co-representative with Executive Vice President Baek Jin-gi of Handok.
Kim Dong-han, son of Chairman Kim Young-jin, joined Handok in 2014 and advanced through head of the management coordination office, director, and senior managing director to become executive director of the planning and coordination office in 2024. He also serves concurrently as head of Handok Healthcare, a health supplements subsidiary launched in May last year.
The company's control structure runs from Chairman Kim Young-jin and Executive Director Kim Dong-han → Y&S International → Handok. As of the end of last year, the largest shareholder of Handok was Y&S International, with 17.69% equity. Established in 2001 for general trading, the company is led by Chairman Kim Young-jin.
According to the 2022 audit report, Y&S International's equity is 5.04% for Chairman Kim Young-jin and 31.65% for Executive Director Kim Dong-han. When asked whether there had been any equity changes since 2022, the company said, "It is difficult to answer."
Some in business circles say, "In the end, Y&S International will be the key to the third-generation succession at Handok."
Equity in Handok is divided among the founder's family. As of the end of last year, Chairman Kim Young-jin held 13.65%, and Executive Director Kim Dong-han held 0.02%. The late Honorary Chairman Kim Shin-kwon's eldest daughter, Kim Geum-hee (3.25%); Kim Geum-hee's husband, Chae Young-se (1.18%); the honorary chairman's second son, Kim Seok-jin (5.13%); and Kim Seok-jin's son, Kim Kyung-han, Handok Digital Healthcare business Deputy Minister (0.03%), also hold equity. Including these, the combined equity stake of Handok's largest shareholder and related parties is 43.38%.
◇ Third-generation at Handok in charge of health supplements and DTx… profitability challenge
Handok is expanding from its traditional pharmaceuticals business into consumer healthcare and digital therapeutics. With the third generation of the founder's family placed at the forefront of the health supplements and Digital Healthcare businesses, some say the next-generation management training is in full swing.
Executive Director Kim Dong-han co-leads Handok Healthcare, wholly owned by Handok, with CEO Kwon So-hyun. Handok launched Handok Healthcare last year by integrating its existing consumer healthcare division with functional ingredient company Theravalues. Theravalues is a Japanese company Handok acquired in 2016.
Handok Healthcare aims to boost profitability by internalizing raw materials, product development, and distribution. It is targeting the health supplements market centered on the curcumin-based ingredient "Theracurmin." Curcumin is an extract from turmeric known for antioxidant and anti-inflammatory effects. Theracurmin features micronized curcumin particles to improve absorption in the body. It also offers the hangover remedy "Ready Q," among others.
Kim Kyung-han, Executive Director Kim Dong-han's cousin and Handok Digital Healthcare business Deputy Minister, is in charge of the digital therapeutics business. Handok distributes in Korea "SleepQ," a digital therapeutic device for insomnia patients developed by Digital Healthcare startup Welt. SleepQ is a prescription-based, smartphone therapy app that analyzes patients' sleep diaries and behavioral data to provide a sleep habit correction program.
However, some say the profitability of the digital therapeutics business remains unproven. Prescription expansion and whether it is covered by national health insurance are cited as key variables.
Handok's consolidated sales in the first quarter this year were 135.4 billion won, up 13% from the same period last year. Operating profit turned to a surplus at 700 million won. However, it posted a net loss of 8.6 billion won.
A company official said, "Increased sales of Ketotop and sales of the newly introduced anticancer drug 'Eloxatin' contributed to performance growth," but on the background of the net loss added, "There are several affiliates, so it is difficult to explain in detail." Meanwhile, Handok Healthcare posted sales of 12.2 billion won and operating profit of 2 billion won last year (May to December).