Serajem founder adopts CEO Lee Kyung-soo and gifts him 10% of shares in succession move
In short
Serajem (세라젬) founder and chairman Lee Hwan-seong (이환성) adopted professional manager and CEO Lee Kyung-soo (이경수) as an adult son last year. This year he gifted him 10% of the company's issued shares as a first stage of share succession, the company said on 20 October. Serajem said it will keep reviewing medium- and long-term succession plans.
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Serajem (세라젬), a home healthcare company, said on 20 October that its founder and chairman, Lee Hwan-seong (이환성), has adopted CEO Lee Kyung-soo (이경수), a professional manager, as an adult son and is passing him his shares. Lee Kyung-soo received 10% of the company's total issued shares as a first stage of share succession. [ 1 , 2 , 3 , 4 ]
According to the company, the adoption was completed last year and the 10% gift followed this year. Newsis, the Chosun Ilbo and Asia Economy reported that the related gift tax filing has also been completed. Yonhap reported that Lee Hwan-seong's stake stood at 60.5% in last year's disclosure. [ 1 , 2 , 3 , 4 ]
Serajem said the decision was made with the company's future and management continuity in mind. It said the chairman values management ability and expertise over blood ties, and judged Lee Kyung-soo suited to lead the company after reviewing his management ability, execution, understanding of the organisation and vision. The company said the two had built trust over more than 20 years of working together, and had weighed various options before choosing succession through adult adoption, with the company's independence, management continuity and long-term governance stability in mind. [ 1 , 2 , 3 , 4 ]
Lee Kyung-soo joined Serajem as a new employee in 2003 and worked in strategic planning, marketing and domestic and overseas sales. In 2017 he ran an agency in Sichuan, China, and in 2018 he took charge of the domestic business at the chairman's request. Yonhap, Newsis and the Chosun Ilbo said he widened a business centred on spinal care medical devices into medical home appliances. Newsis and the Chosun Ilbo said he introduced the Welcafe, a space for trying products, in 2019. Newsis added that the company became the top domestic healthcare firm in 2021. [ 1 , 2 , 3 , 4 ]
Serajem said it will continue to review medium- and long-term succession plans with growth, management continuity and governance stability in mind. A company official was quoted as saying the succession joins the founder's entrepreneurial spirit with the abilities of a next-generation manager proven over more than 20 years, and that the company will pursue sustainable growth while practising social responsibility and sharing. [ 1 , 2 , 3 , 4 ]
Founded in 1998, Serajem grew mainly on spinal care medical devices and massage chairs. The outlets said it is now pursuing a 7-Care solution supporting healthy habits and an AI Wellness Home vision that brings AI technology into living spaces. [ 1 , 2 , 3 ]
Why it matters
The company presents the move as a way to put management skill ahead of blood ties and keep management continuous. The documents do not say how large a stake the chairman keeps or what further transfers will follow.
Key facts
- Serajem said on 20 October that founder and chairman Lee Hwan-seong adopted CEO Lee Kyung-soo as an adult son and gave him 10% of the company's issued shares as a first stage of succession. [ 1 , 2 , 3 , 4 ]
- The adoption was completed last year and the share gift took place this year, according to the company. [ 1 , 2 , 3 , 4 ]
- Lee Hwan-seong held 60.5% of Serajem shares according to last year's disclosure. [ 1 ]
- The gift tax filing for the transfer has been completed. [ 2 , 3 , 4 ]
- Lee Kyung-soo joined Serajem as a new employee in 2003, ran an agency in Sichuan, China, in 2017 and took charge of the domestic business in 2018 at the chairman's request. [ 1 , 2 , 3 , 4 ]
- The two men chose adult adoption after weighing various succession options, citing the company's independence, management continuity and long-term stability of its governance structure. [ 1 , 2 , 4 ]
Confirmed by several sources
- Serajem announced that Lee Hwan-seong adopted Lee Kyung-soo and completed a first share succession by gifting 10% of issued shares. [ 1 , 2 , 3 , 4 ]
- The company said it will continue to review medium- and long-term succession plans. [ 1 , 2 , 3 , 4 ]
- Serajem said Lee Kyung-soo joined in 2003 and ran an agency in Sichuan in 2017 before taking over the domestic business in 2018. [ 1 , 2 , 3 , 4 ]
Still unclear
- How large a stake Lee Hwan-seong holds after the gift. Only the 60.5% figure from last year's disclosure is given; no document states the current holding.
- What further share transfers are planned and when. The company only said it will keep reviewing medium- and long-term succession plans.
- Whether Serajem became the top domestic healthcare company in 2021 under Lee Kyung-soo. Only one outlet reports this, and it gives no source for the claim.