Celltrion unsettled on reports founder has 2 extramarital daughters

Reports that Celltrion founder and chairman Seo Jung-jin has children born out of wedlock are raising concerns over the future shareholding structures of several companies in which he has stakes.

Seo Jung-jin, founder of Celltrion [CELLTRION]

Reports that Celltrion founder and chairman Seo Jung-jin has children born out of wedlock are raising concerns over the future shareholding structures of several companies in which he has stakes.

Celltrion closed 0.87 percent lower Wednesday, and was down as much as 4.11 percent during intraday trading. Celltrion Healthcare fell 2 percent and Celltrion Pharm 3.32 percent.

The falls came as it was revealed that Seo has daughters born outside marriage in addition to his two sons. Seo's first son, Seo Jin-seok, is the chairman of the board at Celltrion and Celltrion Pharm, and the second son, Seo Jun-suk, is Celltrion Healthcare's chairman of the board.

The issue came to light after a local media outlet reported Tuesday evening that the family register was updated in November 2021 to include the two daughters following a family court ruling.

On March 28, Seo was appointed as the co-chairman of Celltrion Holdings and three listed Celltrion companies, two years after he walked away from any roles as the companies. His term run for two years. Seo owns 97.2 percent of Celltrion Holdings, which owns 23 percent of Celltrion, which again owns 55 percent of Celltrion Pharm. Celltrion Holdings also owns 24.3 percent of Celltrion Healthcare.

The founder was in a common-law relationship with a woman from 2001 to 2012. The woman claimed in the media interview that she has been in conflict with Seo and stressed that their two daughters have the right to inherit his property. She also alleged that Seo's second daughter had not met her father for 11 years and filed a lawsuit requesting a meeting with him.

Seo has denied these claims, stating that his relationship with the common-law wife has deteriorated, and that he had paid 28.8 billion won ($21.58 million) in child support. He also accused the woman of continuing to demand a significant amount of money and filed a complaint against her with the police for embezzlement and defamation.

The two companies that the common-law wife represents as CEO, Seorin Holdings and Seowon D&D, have recently been added as affiliates of Celltrion by the Fair Trade Commission. Seorin Holdings is reported to be a clothing manufacturer and wholesale and retail company, while Seowon D&D is an interior decoration company.

Celltrion shares have been trading poorly in recent years, down more than 50 percent from the peak. Celltrion Pharm and Celltrion Healthcare have plunged by around 70 percent.

The company recently introduced new workplace policies that include a more formal dress code and prohibits employees from wearing jeans and other casual clothing.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]