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Dongjin Semichem’s Siwha Plant Complex. (Photo courtesy of Dongjin Semichem) |
[Alpha Biz= Park Nam sook] Seoul – A management dispute has resurfaced within Dongjin Semichem, a leading semiconductor materials company, following the passing of its founder, Chairman Lee Boo-seob, earlier this year.
The conflict centers on a power struggle between the late founder’s two sons: Vice Chairman Lee Joon-kyu, the elder, and Chairman & CEO Lee Joon-hyuk, the younger.
According to an industry insider familiar with the matter, “Vice Chairman Lee Joon-kyu has asserted his claim over Dongjin Semichem’s management rights. However, as the two sides failed to bridge their differences, the succession dispute has reignited.”
The source further revealed, “Chairman Lee Joon-hyuk offered his elder brother a spin-off of the company’s chemical foaming agent business, along with KRW 100 billion (approx. USD 73 million) in cash. Yet, Vice Chairman Lee rejected the proposal, which has reignited the so-called ‘brothers’ feud.’”
Industry observers view the clash as a public manifestation of succession conflict following the founder’s death. Currently, Chairman Lee Joon-hyuk holds de facto control, with more than 36% of Dongjin Holdings shares—including stakes from allied firms such as Myungboosan Industrial and Mise Tech. In contrast, Vice Chairman Lee is reported to hold around 5%.
After Chairman Lee Boo-seob’s passing, Vice Chairman Lee Joon-kyu stepped down from his role as internal director, while Chairman Lee Joon-hyuk has since taken the lead in the company’s core semiconductor materials business. Under the current structure, Chairman Lee oversees the semiconductor and display materials divisions, while Vice Chairman Lee remains responsible only for the foaming agent division, which accounts for roughly 9% of total sales.
Commenting on the situation, Kang Kwan-woo, former Executive Director at Morgan Stanley and CEO of The Premier, noted: “The family dispute over management rights could trigger significant volatility in Dongjin Semichem’s stock price.”
Alphabiz 박남숙 기자(parkns@alphabiz.co.kr)
