Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Celltrion chairman's shunned daughters seen as risk to company governance
Celltrion Chairman Seo Jung-jin / Courtesy of Celltrion
By Park Jae-hyuk
By Park Jae-hyuk
Celltrion is facing uncertainties over Chairman Seo Jung-jin's potential handover of his management rights to his two sons, Celltrion Board Chairman Seo Jin-seok and Celltrion Healthcare Board Chairman Seo Joon-serk, as it was found recently that his two daughters from an extramarital affair had been recognized last year as his biological children, according to industry officials, Thursday.
Considering that the mother of the two daughters emphasized in a recent interview with a local broadcaster that her children have the right to inheritance, they are expected to compete for the assets of Korea's third-richest man.
As of March, the chairman owned a 98 percent stake in Celltrion Holdings, which holds a 20 percent stake in Celltrion and a 24 percent stake in Celltrion Healthcare.
Although the company has never mentioned the succession of the chairman's management rights, his two sons born from his wife have been regarded as the next leaders of the biotech firm, because they were appointed as executive directors of Celltrion affiliates in 2021.
Legal experts expect the Celltrion chairman to give his stocks to his sons while he is alive, so as to circumvent potential claims by his daughters for his assets after his death. Under inheritance law, his daughters may file a suit to inherit the minimum amount of wealth from their father.
Seo appears concerned that his daughters could use inherited Celltrion affiliate shares to intervene in company management.
Amid growing uncertainties, the stock prices of Celltrion affiliates fell sharply during Wednesday's trading session, although they bounced back on Thursday as several news outlets reported that there will be a limited impact on the company's corporate governance.
While Celltrion declined to comment on the chairman's personal affairs, his attorney told reporters that it is too early to talk about the 65-year-old chairman's succession plan. The attorney also sued the mother of the chairman's two daughters on accusations of blackmail.
The mother claims that the chairman has refused to meet his two daughters.
She is the owner of two firms named Seorin Holdings and Seowon D&D, both of which were designated this year as companies belonging to Celltrion Group. Although both companies are irrelevant to other Celltrion affiliates in terms of shareholding, the Fair Trade Commission considers them to belong to Celltrion Group, because of their owner's relationship with the Celltrion chairman.