[Edaily Reporter NA EUN-KYUNG ] The largest shareholder of KoreaKorea United Pharm. Inc.(033270)has changed from founder Chairman Kang Deok-young to his eldest son, CEO Kang Won-ho. Twelve years after CEO Kang began co-managing the company with his father, he has now assumed the position of largest shareholder, completing the transition to a second-generation-led corporate governance structure.

Korea United Pharm. Inc. announced on the 11th that its largest shareholder has changed from Chairman Kang Deok-young and 15 others to CEO Kang Won-ho and 15 others. This follows Chairman Kang’s gift of 800,000 company shares to his son, CEO Kang.

As a result of this gift, Chairman Kang’s shareholding decreased from 2,484,089 shares to 1,684,089 shares. His ownership stake fell from 15.61% to 10.58%. Conversely, CEO Kang’s holdings increased from 2,083,400 shares to 2,883,400 shares, and his ownership stake rose from 13.09% to 18.12%. As a result, CEO Kang has surpassed his father to become the company’s largest individual shareholder.

CEO Kang is the eldest son of Chairman Kang, the founder of Korea United Pharm. Inc. After working at Sanofi-Aventis in 2003, he joined Korea United Pharm. Inc. in 2006 as a manager in the Purchasing and General Affairs Department. In 2014, he was appointed as an inside director and CEO, continuing to co-manage the company with his father. Since then, he has participated in the development of various improved new drugs.

The transfer of shares has accelerated since last year. In November of last year, Chairman Kang also gifted 1.2 million common shares to CEO Kang. At that time, CEO Kang’s shareholding increased from 883,400 shares to 2,083,400 shares. Including this latest gift, Chairman Kang has transferred a total of 2 million shares to CEO Kang.

The company has also secured friendly shareholdings through its affiliates. In December of last year, Korea United Pharm. Inc. sold 435,000 of its own shares to HANCHEM CO.,LTD, where CEO Kang is the largest shareholder. By simultaneously expanding CEO Kang’s personal stake and restructuring the shareholdings of affiliated companies, the company has effectively established a second-generation-centered corporate governance structure.

Since this gift transfer took place within the owner’s family, the combined shareholding of the largest shareholder and 15 related parties remains unchanged at 6,617,910 shares, representing a 41.59% stake. This structure transfers only the status of largest shareholder from the founder to his eldest son, without any change in management control.

However, the co-CEO system is expected to remain in place for the time being. Chairman Kang continues to oversee overall management and serve as chairman of the board, maintaining the co-CEO system with CEO Kang. As the succession of ownership has effectively been completed through this gift, the primary challenge for the second-generation leadership going forward will be for CEO Kang to secure new growth engines beyond the company’s existing business focused on improved new drugs and demonstrate independent management performance.