Investors are piling into Hanmi Science Co., the holding company of South Korean major drugmaker Hanmi Pharmaceutical Group, smelling the need for share purchases from the owner family to ensure a smooth hereditary succession following the death of the patriarch.

Shares of Hanmi Science gained 16.8 percent and Hanmi Pharmaceutical 3.04 percent over the past three trading sessions. Hanmi Science jumped 10.8 percent to finish Tuesday at 54,600 won ($45.7), while Hanmi Pharmaceutical climbed 2.21 percent to 277,500 won.

Lim Sung-ki, founder and chairman of Hanmi Pharmaceutical, died on Sunday from a chronic illness. He was 80.

Lim was the largest shareholder of Hanmi Science with a 34.27 percent stake, with his three children owning about 3 percent each. Hanmi Science controls Hanmi Pharmaceutical through a 41.39 percent stake, with the owner family holding a dominant stake in Hanmi Science.

Lim Jong-yoon, the eldest son and head of Hanmi Pharmaceutical and Hanmi Science owns 3.65 percent of Hanmi Science. His sister Ju-hyun, executive director of Hanmi Pharmaceutical, holds a 3.55 percent stake. The youngest son Jong-hoon, chief information officer of Hanmi Pharmaceutical and chief executive of Hanmi Healthcare, owns 3.14 percent.

The eldest Lim Jong-yoon has long led the drugmaking conglomerate as the heir-apparent, taking over the reins from his father in 2016.

But to ensure a smooth transition, he and his siblings would need to settle the inheritance of their late father’s stake holdings. An even distribution would result in each heir having a roughly 15 percent stake in Hanmi Science, meaning a strong alliance would be needed to keep ownership within the family.

“The stake ownership issue is likely to be resolved naturally after the mourning period,” said a Hanmi Pharmaceutical official.

By Kim Gi-chul, Seo Jin-woo and Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]