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Dongjin Semichem Siwha Plant Exterior. (Photo = Dongjin Semichem) |
[Alpha Biz= Kim Jisun] Dongjin Semichem announced on Thursday that it had reappointed Vice Chairman (and CEO) Lee Joon-hyuk as an inside director during its regular shareholders' meeting held at its Eumseong plant in North Chungcheong Province. At the meeting, President Kim Sung-il, head of manufacturing operations, and President Kim Jae-hyun, head of the semiconductor materials division, were newly appointed as inside directors.
This marks a significant shift in the company's board composition, which was previously dominated by the founding family, including the late Chairman Lee Boo-sub, Vice Chairman Lee Joon-hyuk, and his elder brother, Vice Chairman Lee Joon-kyu, who oversaw the foaming agent business. Following Chairman Lee’s unexpected passing on February 25 and Lee Joon-kyu stepping down as an inside director, Lee Joon-hyuk is now the sole special relation remaining on the board.
Dongjin Semichem, which started as a manufacturer of foaming agents that alter material properties, was once the global leader in the sector. The company later expanded into the electronic materials industry, becoming the fourth company in the world to successfully develop photoresist, a key material for semiconductor processing, in 1989—following the U.S., Germany, and Japan. It played a crucial role in localizing photoresist production amid Japan’s semiconductor export restrictions in 2019.
Industry analysts view the reshuffle as a confirmation that the company’s core businesses—semiconductor, display, and battery materials, which account for roughly 90% of total sales—will remain under Lee Joon-hyuk’s leadership. In 2023, Dongjin Semichem reported sales of KRW 1.41 trillion and an operating profit of KRW 208.2 billion.
With Lee Joon-hyuk continuing to oversee the semiconductor, display, and battery materials division, and Lee Joon-kyu focusing on the foaming agent business—now contributing only around 10% of revenue—the company appears to have delineated its business structure.
Rather than a leadership dispute, the market expects a smooth inheritance process, involving the division of substantial assets, including shares and real estate, as well as the potential spin-off of the foaming agent business. As of the end of last year, the late Chairman Lee held a 55.7% stake in Dongjin Holdings, which in turn owns 35.2% of Dongjin Semichem.
Shinyoung Securities estimates that the inheritance tax based on share value alone will amount to at least KRW 124.2 billion. Given Chairman Lee’s significant real estate holdings, the actual inheritance tax is expected to be even higher. The founding family is currently discussing how to allocate the inheritance and determine the payment method.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
