Dong-A Socio Group is putting a new focus on its management, appointing Kang Jung-seok chairman of the group, succeeding his father. The junior Kang is the grandson of the late Dong-A Pharmaceutical founder Kang Jung-hee.
The senior Kang, 90, has virtually resigned from management to serve as honorary chairman. In 2006, the senior Kang promoted the junior Kang to president of Dong-A Otsuka and CEO and vice president of Dong-A Pharmaceutical, grooming the latter as the heir-apparent of the group. The junior Kang became president of Dong-A Socio Holdings in 2013.
In 2004, the group was embroiled in a management dispute between the senior Kang and his second son Kang Moon-suk before Kang Jung-seok solidified his position as the heir-apparent. Kang Moon-suk was relieved as Dong-A Pharmaceutical president and he left the group after disposing of his stock holdings in 2008.
Last October, new Chairman Kang raised his stock holding in Dong-A Socio to a 26.54 percent stake through a paid-in capital increase. Last November and December, he conducted a series of massive reshuffles, calling for the appointing Dong-A Otsuka President Min Jang-seong to Dong-A ST, a major subsidiary of the group. CEOs of the group’s subsidiaries have been replaced with younger “young blood” ranging from their late 40s and early 50s in age.
Under the stewardship of new Chairman Kang, the group says it will make preparations for the next 100 years.
In a ceremony to kick off the 2017 business year at the group headquarters in Yongdu-dong, eastern Seoul, Honorary Chairman Kang urged his staff to make Dong-A Socio Group a world-class company. He called for group executives to make it a place in which employees can work with autonomy and passion, saying, “Persons who think in an autonomous manner, be creative on the job, motivate co-workers are to be leaders.”
Echoing the view of Honorary Chairman Kang, new Chairman Kang declared his determination to make Dong-A Socio Group a world-class pharmaceutical company. “I’ll devote myself to fostering Dong-A Socio into a world-class pharmaceutical company by establishing a holding company regime and having each business company have the stuff with expertise and efficiency,” he said.
Explaining the background of Chairman Kang’s promotion, the junior Kang has successfully spearheaded the group’s scheme to shift management into “a holding company” regime since 2013, the group said.
ST Pharm the junior Kang headed has established the groundwork for growth by signing a 152 billion won deal to supply anti-viral raw material medicines with Gilead Sciences of Ireland.
Chairman Kang swapped ST Pharm shares with Dong-A Socio Holdings shares, allowing him to become the biggest shareholder of the holding company with a 26.5 percent stake. Founded in 1983, ST Pharm (formerly known as Samchully Pharmaceutical) has been offering excellent custom manufacturing services of APIs and their intermediates to meet clients’ high expectations for their use in pharmaceutical development and be compliant to CGMP requirements.
Unlike conglomerates depending on each subsidiary’s growth, new Dong-A Socio Group Chairman Kang has been credited with having successfully fostered an independent company with a competitive edge.
He graduated from Sungkyunkwan University Pharmaceutical Department. Entering Dong-A Pharmaceutical in 1989, he held such positions as the business management team of the management division, the head of the medical business division, Dong-A Otsuka CEO & president, Dong-A Pharmaceutical vice president, Dong-A Socio Holdings president, and Dong-A Socio Holdings.
Dong-A Socio Holdings Co. devises Dong-A Socio Group’s vision and strategic objectives and plans the Group’s human resources and finances according to its objectives. Also, it pushes to secure growth engines through the development of biomedicines and innovative drugs, and to expand businesses from pharmaceuticals to medical services and new businesses.
Dong-A Socio Group consists of diverse companies that engage in medicines, beverages, logistics, IT, and materials. To secure the business competitiveness and synergies of its affiliates, Dong-A Socio Holdings endeavors to design the entire organizational structure and to formulate the Group’s growth vision.