South Korea’s pharmaceutical industry is heading into annual shareholders meeting season later this month, with votes expected to go beyond routine reporting of last year’s results and focus on management stability and business direction.
Industry officials said major drugmakers will begin meetings on March 20, including Yuhan Corp. and Dongkook Pharmaceutical, with sessions continuing through the end of the month. March 26 is set to be a “super meeting day” for several companies, including GC Green Cross, Daewoong Pharmaceutical and Dong-A Socio Holdings. Boryung is scheduled to hold its meeting on March 31.
Hanmi Pharmaceutical is drawing particular attention, with the key issue being whether CEO Park Jae-hyun will be reappointed. With a conflict structure continuing among Chairwoman Song Young-sook, the wife of late founder Lim Seong-gi, CEO Park and major shareholder Shin Dong-kook, chairman of Hanyang Precision, a proxy fight at the meeting is seen as likely. The outcome is expected to help determine effective control of management, while votes from minority shareholders and third parties such as the National Pension Service are also viewed as variables.
The industry is also watching Dongwha Pharmaceutical, where an agenda item has been submitted to appoint Woo Byung-woo as an audit committee member. Market views are mixed because he lacks experience in pharmaceutical management and research and development, though some analysts describe the move as a strategic choice to strengthen legal risk management and internal controls in a heavily regulated industry.
Daewoong Pharmaceutical nominated Choi In-hyuk, head of tech business at Naver, as an outside director candidate. He is an IT specialist who has worked at Samsung SDS and Naver Financial, and the nomination is seen as aligned with Daewoong’s push to expand digital health care.
Companies are also lining up to amend their articles of incorporation to broaden business purposes. Daewoong Pharmaceutical plans to add “solar power generation,” Dong-A ST will add “car wash operations,” and JW Pharmaceutical will add “investment and management advisory and consulting.” The moves are being read as efforts to secure steadier revenue sources beyond new drug development.
“With pressure to cut drug prices and rising R&D costs, these shareholders meetings will be a place to gauge each company’s mid- to long-term strategy,” an industry official said. “There is a clear push to pursue management stability, strengthen core competitiveness and expand new businesses at the same time.”
* This article has been translated by AI.
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