Lee Hwan-seong, the founder of Seragem, has adopted CEO Lee Kyung-soo as his son and initiated a share succession plan.
According to Seragem on October 20, Chairman Lee completed the adult adoption last year and has finished the first phase of share succession by donating 10% of the company's total issued shares this year. The related gift tax filing has also been completed. Moving forward, the company plans to continuously review long-term succession strategies, considering sustainable growth, management continuity, and governance stability.
Born in 1961, Chairman Lee has one daughter, who is reportedly not interested in managing the business. CEO Lee, born in 1978, is 17 years younger than the chairman.
CEO Lee joined Seragem as a new employee in 2003 and has built experience in strategic planning, marketing, and domestic and international sales. In 2017, he gained hands-on experience by directly managing a dealership in Sichuan, China. At the request of Chairman Lee in 2018, he took charge of domestic operations and implemented new growth strategies, leading Seragem to become the top healthcare company in South Korea by 2021.
CEO Lee expanded the company's focus from spinal care medical devices to a new market termed 'medical appliances' and introduced Well Cafe in 2019, establishing experience-based marketing in the domestic market. He has continued to diversify the product portfolio and innovate the business structure, thereby expanding Seragem's growth foundation.
In deciding on the adult adoption for succession, Chairman Lee considered CEO Lee's management capabilities, execution skills, understanding of the organization, and future vision.
The legal effect of adult adoption allows the professional manager to inherit rights as the founder's child. Consequently, CEO Lee will be able to participate in inheritance as the legal heir of Chairman Lee.
As of last year's disclosure, Chairman Lee holds 60.5% of Seragem's shares. Given that a significant portion of shares remains with him, the transfer of management rights is expected to proceed over the long term.
A Seragem representative stated, "This succession connects the entrepreneurial spirit of the founder with the proven capabilities of the next-generation manager over the past 20 years, preparing for Seragem's future. We will promote sustainable growth based on a stable governance structure and responsible management while practicing social responsibility and the value of sharing."
* This article has been translated by AI.
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