At Hanmi Science’s extraordinary general meeting on Thursday, shareholders voted on proposals that could have shifted the balance of power within the Hanmi Group.
After a four-and-a-half-hour delay to verify proxy votes, the meeting finally began at 2 p.m. However, the board remains locked in a 5-5 stalemate between two rival factions, leaving the future of the company’s governance uncertain.
Held at the Seoul Transportation Center, the meeting saw shareholders vote on key proposals, including a plan to expand the board from 10 to 11 members. The expansion, which would have secured a majority for the alliance led by Hanyang Precision Chairman Shin Dong-guk, Hanmi Science Chairwoman Song Young-sook, and Vice Chairwoman Lim Ju-hyun, failed to reach the required two-thirds approval, falling short at 57.89 percent.
Although Shin’s appointment as a director was approved, Lim Ju-hyun’s nomination was withdrawn after the broader proposal was rejected. Meanwhile, a separate motion to reduce the company’s capital reserve, aimed at increasing dividends to attract minority shareholder support, passed with majority approval.
The Hanmi Science board is now evenly split between five members aligned with the Lim brothers—Lim Jong-yoon and Lim Jong-hoon—and five members backed by the alliance. Previously, the brothers had held a majority. Despite the alliance’s efforts to tip the balance by appointing two new directors, only Shin was seated, limiting their influence.
Hanmi Science CEO Lim Jong-hoon, the only key stakeholder to attend the meeting and whose term runs until 2027, retained his position but acknowledged the challenges ahead. “With the board now at a tie, I feel the need to demonstrate stronger leadership,” he said.
The alliance holds 33.78 percent of Hanmi Science shares, compared to the brothers’ 25.6 percent. The National Pension Service (6.04 percent) remained neutral, leaving individual shareholders’ votes as the deciding factor. In recent weeks, the brothers intensified efforts to sway undecided votes, including issuing notices to foundations holding 8.09 percent of shares, urging neutrality by withholding donations until commitments were clarified.
The feud has escalated in recent months, with both sides filing legal complaints. On Oct. 13, an ally of the Lim brothers accused Chairwoman Song and Hanmi Pharm CEO Park Jae-hyun of embezzlement. Days later, Hanmi Pharm filed charges against Lim Jong-hoon for obstruction of business.
The next critical juncture will be Dec. 19, when Hanmi Pharm shareholders are set to vote on a proposal to dismiss CEO Park.
With 84.68 percent of voting shares represented at Thursday’s meeting, industry observers predict the dispute will continue, prolonging uncertainty over the group’s leadership and strategic direction.
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