New HLB Innovation CEO Makes First Share Purchase Since Taking Office, Signaling Groupwide Commitment to Responsible Management

HLB Innovation CEO Kim Beom-su purchased 4,000 common shares of the company on the open market on the 25th at 12,976 won per share. The total purchase amounted to approximately 51.9 million won and marked his first acquisition of shares since being appointed CEO on July 1 this year. Following the purchase, Kim owns 4,000 shares, representing 0.01% of the 31,753,544 total shares outstanding. According to the Financial Supervisory Service’s electronic disclosure system, the report type in the ownership status report was listed as “new.”

The purchase came amid a series of share purchases by HLB Group executives. With volatility in the group’s share prices increasing after HLB, the group’s parent company, received a complete response letter (CRL) from the US Food and Drug Administration regarding its liver cancer drug, Chairman Jin Yang-gon and other top executives have directly purchased shares, expressing their commitment to enhancing shareholder value.

■ Accelerating business restructuring through a two-track semiconductor and biopharmaceutical structure

Founded in 1978 as a semiconductor lead-frame manufacturer formerly known as Poongsan Special Metals, HLB Innovation added an advanced biopharmaceutical business to its existing semiconductor components business after joining HLB Group in 2023, creating a dual structure. The company uses profits from its semiconductor business to support new drug development at its US subsidiary, Verismo Therapeutics.

Verismo was founded by researchers at the University of Pennsylvania (UPenn) who led development of Novartis’ Kymriah, the world’s first CAR T-cell therapy. The company is currently conducting a phase 1 trial in the United States of its next-generation cell therapy SynKIR-110, targeting solid and hematologic cancers. Its key challenge is overcoming the limitations of existing CAR T-cell therapies, which have not been effective against solid tumors.

■ Biopharmaceutical investment expands through 40.5 billion won in convertible bonds and acquisition of HLB Cell

HLB Innovation decided to issue convertible bonds worth 40.5 billion won to accelerate Verismo’s clinical development and R&D. On Aug. 27, it also acquired a 99.30% stake in HLB Cell, an affiliate within the group, incorporating it as a subsidiary as part of a business restructuring.

HLB Cell is a South Korean company that has accumulated expertise in cell culture and quality assessment research since 2009. Industry observers believe that combining Verismo’s global drug development capabilities in the United States with HLB Cell’s domestic research base could enable HLB Innovation to serve as a hub overseeing technology transfers and joint development in Asia.

Meanwhile, in its semiconductor business, stable cash generation is expected to continue in the power semiconductor and power module lead-frame segments, supported by a recovery in global semiconductor conditions and growth in the electric vehicle market. The financial investment industry assesses the company’s financial structure—in which semiconductor profits support biopharmaceutical R&D—as nearing completion and identifies the results of Verismo’s phase 1 trial as a key variable in the company’s value.