Hanmi Group Faces Governance Clash Over Chair Pay
Claims have emerged inside Hanmi Group that it is considering using designation of Chair Song Young-sook as the “same person” under the Monopoly Regulation and Fair Trade Act to justify her high compensation. Critics say the move is intended to build a rationale under which she could receive pay fro
Reports suggest Hanmi Group is contemplating using a designation of Chair Song Young-sook as the "same person" under the Monopoly Regulation and Fair Trade Act to justify her high compensation. Critics argue this move aims to provide a rationale for her receiving pay from affiliates without holding a distinct formal position. Former Cure Therapeutics CEO Kim Tae-ho disclosed on August 12 his awareness of the company's plan to designate Song as the same person, criticizing the group for prioritizing justification over addressing allegations.
However, Hanmi Group currently falls short of the 5 trillion won ($3.54 billion) total asset threshold required for this designation and was not included in the Fair Trade Commission's 2026 list of businesses subjected to disclosure. Even with designation, the same-person status would not serve as a legal basis for compensations, as it aims to enhance oversight and accountability for controlling families through rules on private benefit tunneling and disclosure obligations.
The dispute over the management control dispute and the owner family's ethics has intensified amid allegations. Kim claimed Song received an annual salary of 2 billion won, despite stepping back from front-line management, and utilized a corporate card at luxury stores and a hospital. Hanmi Group denied these allegations, stating the corporate card was used for employee welfare and business purposes, and accused the whistleblower of presenting incomplete data.
The leadership conflict is also shifting rapidly. Hanyang Precision chairman Shin Dong-kook, who previously supported Song, now opposes her, while Lim Jong-yoon's son, Lim Jong-hoon, sold shares and aligned with Song, bringing favorable holdings on her side to about 40.86%. Although the gap between the sides narrowed to around 5 percentage points, the effective voting rights are unclear.
Shin's side argues about 6.6% of Song's family shares cannot be voted due to a repurchase agreement transaction with Equities First Holdings, granting them a perceived voting advantage. The conflict has resulted in litigation, with Song filing a lawsuit for 60 billion won in contractual penalties, alleging Shin breached a shareholder agreement.
In response, Shin sought a provisional seizure of shares and obtained a court decision for the same. The first ruling in the contractual penalty suit is set for October 1. Despite Hanmi Pharmaceutical's record results in the first half of the year, experts warn that prolonged governance instability and ongoing shareholder conflicts could lead to a decline in R&D investment and harm corporate value.
Hanmi Group maintains its commitment to a professional management system and transparent internal rules but faces criticism for investor fatigue and uncertainty deepening as the management control dispute overshadows the company's core business performance.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
