Shin Dong-guk, chairman of Hanyang Precision and largest shareholder of Hanmi Science, borrowed over 5000 billion won to secure equity in the pharmaceutical holding company, with total loans reaching approximately 5365 billion won according to investment banking industry sources on July 9. Shin disclosed on July 7 a contract to purchase 3.604 million Hanmi Science shares for 172.7 billion won from Hong Ji-yoon, wife of Lim Jong-yoon, chairman of Cori Group and eldest son of Hanmi Pharm's founder, and six others, with settlement scheduled for July 7-11 next month. The borrowing, comprising 3272 billion won under Shin's personal name and 2093 billion won under Hanyang Precision, generates an estimated 180 billion won in annual interest at approximately 4% rates — equivalent to roughly 15 billion won per month — which market observers interpret as demonstrating Shin's determination to secure management control of Hanmi Science despite the financial burden. The transaction follows Shin's March purchase of 4.41 million shares (6.45%) from Lim Jong-yoon for approximately 213.7 billion won, bringing total acquisitions from the Lim Jong-yoon side to approximately 386.4 billion won. Shin currently participates in a four-party alliance with Song Young-sook, chairman of Hanmi Pharm Group, Lim Ju-hyun, vice chairman of Hanmi Pharm, and La Defense Partners through a shareholder agreement, though the deepening transactional relationship between Shin and Lim Jong-yoon has prompted speculation about positioning after the shareholder agreement expires.
Shin Dong-guk Borrows 5365 Billion Won Through Stock-Backed Loans and Exchangeable Bonds
Shin Dong-guk's total borrowing to acquire Hanmi Science equity reached approximately 5365 billion won, according to investment banking industry sources on July 9. The loans consist of 3272 billion won under Shin's personal name and 2093 billion won under Hanyang Precision, raised through stock-backed loans and exchangeable bond (EB) issuance. Stock-backed loans excluding EBs total approximately 4481 billion won. Most of Shin's loans carry interest rates around 4 percent, resulting in an estimated annual interest expense of 180 billion won, or approximately 15 billion won per month. Market participants view the substantial interest burden as evidence of Shin's commitment to securing management control of Hanmi Science, particularly in preparation for the period after the current four-party shareholder agreement expires.
July 7 Transaction Raises Shin's Combined Stake to 35.1 Percent
Shin Dong-guk disclosed on July 7 a contract to purchase 3.604 million Hanmi Science shares for 172.7 billion won from Hong Ji-yoon and six others, with settlement scheduled for July 7-11 next month. Shin currently holds 22.88 percent of Hanmi Science as the largest individual shareholder. Upon completion of the July 7 transaction, Shin's personal stake will rise to 28.15 percent. Including Hanyang Precision's 6.95 percent stake, Shin's combined ownership will reach 35.1 percent, exceeding the 35 percent threshold.
Total Purchases from Lim Jong-yoon Side Reach 386.4 Billion Won
Shin Dong-guk purchased 4.41 million Hanmi Science shares (6.45 percent) from Lim Jong-yoon in March for approximately 213.7 billion won. Including the July 7 transaction, total purchases from the Lim Jong-yoon side amount to approximately 386.4 billion won. Investment banking industry observers note the deepening transactional relationship between Shin and Lim Jong-yoon. Lim Jong-yoon stated in a 2024 interview with Seoul Economic Daily his intention to secure equity through Cori Group, explaining that currently operating companies are valued in the trillions of won and that he would emphasize synergies with Hanmi Pharm Group to institutional investors while presenting a vision to become Korea's Abbott.
FAQ
What did Shin Dong-guk announce on July 7 regarding Hanmi Science shares?
Shin Dong-guk disclosed on July 7 a contract to purchase 3.604 million Hanmi Science shares for 172.7 billion won from Hong Ji-yoon, wife of Lim Jong-yoon, and six others, with settlement scheduled for July 7-11 next month.
How much has Shin Dong-guk borrowed to acquire Hanmi Science equity?
Shin Dong-guk borrowed approximately 5365 billion won, consisting of 3272 billion won under his personal name and 2093 billion won under Hanyang Precision, through stock-backed loans and exchangeable bond issuance.
What is Shin Dong-guk's total purchase amount from the Lim Jong-yoon side?
Shin Dong-guk's total purchases from the Lim Jong-yoon side reach approximately 386.4 billion won, including a March transaction of 4.41 million shares for approximately 213.7 billion won and the July 7 transaction of 3.604 million shares for 172.7 billion won.
