[Edaily Reporter NA EUN-KYUNG ] #Former executives of HanmiPharm Group have filed a police complaint against Shin Dong-guk, chairman of Hanyang Precision, and his eldest son, Shin Yu-seop, on charges of embezzlement and breach of trust. In response, Chairman Shin’s side stated that the complaint is baseless, claiming it distorts legitimate financial loans and dividend payments as criminal acts, and announced plans to take legal action.

According to industry sources on the 15th, three former Hanmi Group executives filed a complaint with the Yongsan Police Station in Seoul on the 11th, accusing Chairman Shin and his son of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and breach of trust).

The complainants alleged that Chairman Shin misappropriated funds from Hanyang Precision, a company in which he holds a 100% stake. They claimed that from 2014 to 2023, Chairman Shin repeatedly withdrew approximately 467.3 billion won from Hanyang Precision’s corporate funds under the guise of short-term loans, then accounted for the transactions by repaying the full amount at the end of each fiscal year.

It is reported that the complaint also alleges that in 2024 and 2025, he withdrew approximately 44.4 billion won in short-term loans and used the funds to acquire shares of Hanmi Science(008930) under his personal name.

The complainants also took issue with the 113 billion won interim dividend paid in 2020. They allege that Hanyang Precision caused damage to the company by disposing of its financial assets, taking out loans secured by real estate, and distributing a dividend to Chairman Shin amounting to dozens of times the company’s annual operating profit.

Allegations were also raised that H&D—a family-owned company controlled by Chairman Shin and his son—was included in Hanyang Precision’s raw material procurement process to funnel business its way, thereby extorting so-called “toll fees” and misappropriating business opportunities. The complainants claimed that the volume of transactions routed through H&D over a five-year period starting in 2021 amounted to approximately 49.6 billion won. It is reported that the complaint also includes allegations of embezzlement under the guise of facility investments at Hanyang Precision.

A representative for the complainants stated, “While investigating the source of funds used by Chairman Shin to acquire shares in Hanmi Science, we identified allegations of the private misappropriation of Hanyang Precision’s funds,” adding, “We filed the complaint after reviewing the audit reports and financial statements.”

Chairman Shin has recently been purchasing Hanmi Science shares in succession, raising his personal ownership stake to 28.15%. Hanyang Precision, which is 100% owned by Chairman Shin, also holds a 6.95% stake in Hanmi Science.

Chairman Shin’s side categorically refuted the allegations, stating they were untrue. They explained that financial transactions between Hanyang Precision and Chairman Shin were conducted in accordance with a loan agreement, and that the principal and statutory interest had been repaid as agreed without a single instance of delinquency. They added that these transactions were recognized as legitimate during both accounting audits and tax investigations.

Regarding the interim dividend of 113 billion won, they explained, “This was the first dividend paid by Hanyang Precision, funded by distributable earnings accumulated over a long period as the company had continuously reinvested profits without paying dividends since its founding,” adding, “It was carried out within the scope permitted by the Commercial Act and tax laws, and the relevant taxes were paid properly.”

Regarding the transaction with H&D, the company argued that it was a standard business structure designed to centralize the purchase of steel plates—a raw material—and secure volume-based price discounts. The company maintains that this did not cause losses to affiliates but rather reduced procurement costs and generated actual profits.

Chairman Shin’s side stated, “All matters raised in the criminal complaint were handled in accordance with lawful procedures, and there is no fact that caused damage to the company’s creditors or executives and employees,” adding, “We view this as a public smear campaign targeting an unrelated private company in order to pressure the largest shareholder of HanmiPharm Group.”

They continued, “As soon as we review the complaint, we will consider legal action, including filing charges of false accusation and defamation,” and added, “We will also hold those who damage our reputation by reporting unverified, one-sided claims as facts accountable under civil and criminal law.”