Chaebol heirs take bigger roles in biotech leadership reshuffle

Lotte, SK heirs step up in biotech; Samsung promotes youngest female executives

From left: Shin Yoo-yeol, co-CEO of Lotte Biologics, Chey Yoon-chung, vice president of SK Biopharmaceuticals and Kim Hee-jeong, executive vice president of Samsung Biologics (Lotte Group, SK Group and Samsung Biologics)

Korea’s biotech and pharmaceutical companies are reshaping leadership to sharpen efficiency and competitiveness, with this year’s year-end reshuffle elevating chaebol scions and accelerating diversification.

Lotte Biologics appointed Shin Yoo-yeol, the eldest son of Lotte Group Chair Shin Dong-bin, as the co-CEO at the end of last month, promoting him from head of global strategy at the retail conglomerate’s contract development and manufacturing organization, or CDMO, firm.

The Lotte heir, who doubles as vice president of Lotte Corporation, will work alongside existing CEO James Park. About a month and a half before the co-CEO appointment announcement, the Lotte Group chair and heir, as well as Park, visited its CDMO plant in Syracuse, New York, reiterating the conglomerate’s commitment to its bio business.

Lotte Biologics, which acquired the plant from Bristol Myers Squibb for $160 million in Jan. 2023, pledged to invest an additional $48 million in the US site to upgrade the facility and increase production capacity.

Meanwhile, SK Biopharmaceuticals appointed Chey Yoon-chung, the firm’s vice president and daughter of SK Group Chair Chey Tae-won, to lead future strategies.

The SK heiress, who began working at the conglomerate’s drug developing company in 2017, will lead mid- to long-term strategy development, portfolio management, global expansion planning and new business assessment at the newly established strategy department.

SK Biopharmaceuticals said the new department, which will be headed by Chey starting next year, will further strengthen the company’s push for future actions and its global competitiveness based on the balanced growth of new drug development and new business opportunities.

Industry watchers said the two heirs' appointments signify each conglomerate’s emphasis on their biopharmaceutical businesses.

“What (Lotte and SK) did was to not only hand over more responsibility to their heirs, but also show how much weight they are putting on their biopharmaceutical businesses as they seek future growth engines,” said an official working in the biopharmaceutical industry.

Samsung Biologics and Samsung Bioepis appointed the youngest female executives in the history of each company as they announced their yearly leadership shuffle last month.

According to Samsung Biologics, Kim Hee-jeong, born in 1981, was promoted as the youngest executive vice president ever at the CDMO company. Kim, who will head the firm’s drug substance department, was recognized for her role in leading its stable production system despite new plant ramp-ups and increased production capacity.

Samsung Biologics also promoted Ahn So-yeon, born in 1988, to vice president and head of Plant 4 operations, citing her contribution to increased sales through stable drug production, and early completion of Plant 4’s full operation through effective management of the facility’s production process and schedule.

At Samsung Bioepis, Shin Ji-eun took on the role of executive vice president. Born in 1981, Shin led the company’s manufacturing science and technology team, where she helped bolster product competitiveness by discovering new partners and optimizing the production process.

Earlier this month, JW Pharmaceutical appointed Hahm Eun-kyung as its first female CEO since its 1945 establishment. A graduate of Seoul National University’s College of Pharmacy, Hahm joined JW Pharmaceutical in 1986 and has taken key positions at the company over the period of nearly four decades.

As co-CEO, Hahm will work alongside incumbent CEO Shin Young-sub, leading JW Pharmaceutical’s research and development as well as management and operation. Shin will focus on sales and marketing, according to the company.

“In Korea, unlike how it has been at multinational big pharmaceutical companies, most important positions have been occupied by male executives in their 50s,” said an official working at a multinational biotech.

“These appointments demonstrate how firms are changing and giving promotions and leadership opportunities to those who excel regardless of gender or age.”