The "four-party alliance" formed to stabilize management control at Hanmi Pharmaceutical Group has descended into open legal warfare, with major stakeholders filing suits and freezing each other’s assets.
On July 29, the Seoul Central District Court granted an application by Shin Dong-kuk, chairman and CEO of Hanyang Precision, to provisionally seize 10 billion won worth of Hanmi Science shares held by Vice Chair Lim Ju-hyun.
Shin contends that Lim breached a shareholders' agreement, triggering a 20 billion won contractual penalty claim, and requested the court secure half that amount first. A contractual penalty clause requires a party to pay a predetermined sum if contract terms are violated.
The court’s provisional seizure order restricts Lim’s ability to dispose of the shares but does not constitute a final ruling on liability. Whether a breach occurred and whether penalties are owed will be determined during a main trial.
Dispute Over Lim Ju-hyun’s 2.7% Stake
At the center of Shin’s claim are 1,847,500 Hanmi Science shares—roughly 2.7% of the company's total outstanding stock—that Lim traded with financial firm Equity First under a repurchase (repo) agreement.
Under a repo agreement, shares are transferred to raise capital with an option to repurchase them when the contract expires. Regulatory disclosures indicate Lim retained legal status equivalent to ownership for the stock transferred to Equity First entities.
However, Shin’s side alleges that Equity First sold the shares on the open market, preventing Lim from exercising voting rights tied to the stake at Hanmi Science’s regular shareholders meetings in 2025 and 2026. Shin argues this failed to maintain the stake required under their agreement and breached their joint voting pact. The merits of these claims remain unadjudicated by the court.
A Two-Year Power Struggle
The governing alliance was forged following a complex, two-year dispute that began in January 2024, when Chair Song Young-sook and her daughter, Vice Chair Lim Ju-hyun, sought to merge Hanmi Group with OCI Group.
Song’s sons, Lim Jong-yoon and Lim Jong-hoon, opposed the integration. Although court injunctions failed to stop the deal, shareholders voted in favor of five board candidates backed by the brothers at the March 2024 annual meeting, effectively killing the OCI merger.
Shin, who initially supported the brothers, realigned with Song and Lim Ju-hyun in July 2024 by agreeing to purchase a 6.5% stake in Hanmi Science for 164.4 billion won. In December 2024, private equity firm La Defense Partners (via special purpose company Killington) joined Song, Lim Ju-hyun, and Shin to form a "four-party alliance" backed by a shareholders' agreement covering board composition, joint voting, rights of first refusal, and tag-along rights.
The dispute appeared to ease when Lim Jong-hoon stepped down as Hanmi Science CEO in February 2025, followed by Song returning briefy as CEO before stepping down alongside her inside director seat in March 2025. Vice Chair Kim Jae-kyo was appointed CEO as the company announced a shift to professional management.
Alliance Splinters Over Senior Care Venture
However, the alliance splintered in June 2025 over a proposed investment in a senior care business involving a retirement community in Banpo-dong, Seoul. While Hanmi Science’s board initially approved the project on June 5, 2025, it reconsidered and voted down the proposal five days later after Shin withdrew his support, citing unmet prerequisites regarding hospital participation and financial feasibility.
In response, Song, Lim Ju-hyun, and Killington filed a 60 billion won contractual penalty lawsuit against Shin in September 2025, claiming he violated their joint voting agreement. Prior to filing, they secured provisional seizures against 12 billion won of Shin’s Hanmi Science shares and a 10 billion won residential property in July 2025. The first court ruling in this 60 billion won lawsuit is scheduled for October 1.
Accelerating Stake Acquisitions and Board Realignment
Parallel to courtroom battles, major shareholders are aggressively shifting equity positions. In February 2026, Shin agreed to acquire 4,410,032 shares from former Hanmi Science president Lim Jong-yoon’s side for 213.7 billion won, lifting his direct holding to 22.88%. On July 7, Shin signed an additional deal to buy 3,604,799 shares from seven individuals, including Lim Jong-yoon’s spouse, Hong Ji-yoon, for 172.7 billion won.
If that transaction completes between August 7 and 11 as planned, Shin’s personal stake will reach 28.15%. Combined with Hanyang Precision’s 6.95% holding, Shin’s faction will control 35.1% of Hanmi Science.
Meanwhile, Lim Jong-hoon, CEO of Hanmi Fine Chemical, agreed to sell a 2.5% stake (1,709,788 shares) to the Now IB No. 22 fund for 82 billion won, stating he would honor the founder’s spirit alongside his mother and sister. However, completion disclosures remain unverified, and how Now IB will vote its shares remains uncertain.
Following its March 31 shareholders meeting, Hanmi Science reorganized its board into 10 members—comprising four inside directors, three outside directors, and three non-executive directors—representing diverse and competing interests, including Vice Chair Lim Ju-hyun, CEO Lim Jong-hoon, Chair Shin Dong-kuk, and La Defense CEO Kim Nam-kyu.
Because board composition remains divided and voting rights tied to repo shares and investment funds remain fluid, a victory in the October 1 ruling or individual share accumulation will not guarantee immediate control over Hanmi Group. The next phase will depend on court interpretations of contract terms, finalized equity transfers, and shifting dynamics within the board.
