Court dismisses W60b penalty claim against Hanmi Pharm's largest shareholder

Hanmi Pharm Group Chairwoman Song Young-sook and Vice Chairwoman Lim Joo-hyun lost their first-round lawsuit seeking a 60 billion won ($44.3 million) penalty against Shin Dong-kook, chairman of Hanyang Precision and the company's largest shareholder.

The Seoul Central District Court's Civil Division 30, presided over by Judge Kim Seok, dismissed the plaintiffs' claims Thursday, ordering Song and her daughter to bear the full litigation costs.

The court ruled that Shin's opposition to a senior care business investment — the flashpoint of the dispute between the two sides — did not constitute a breach of the shareholder agreement among the four-party alliance.

Regarding the board resolution at the center of the case, the court said the meeting "was essentially convened to make a final determination on whether to proceed with the investment, and cannot be viewed as having been reconvened to improperly overturn a previously completed board resolution."

The court further ruled in Shin's favor, finding "no evidence that Shin had reached a definitive agreement to invest in the project unconditionally, beyond an agreement to place the investment question on the board agenda for discussion."