Founder Lee Hwan-seong (Chairman) (65) of healthcare specialist company Ceragem has initiated a management succession by adopting a professional manager, who is not his biological child, as an adopted son and gifting shares of the company. Industry observers are paying attention to the fact that this goes beyond simply entrusting operations to a professional manager, involving the transfer of ownership rights.
According to Ceragem on the 20th, Lee adopted CEO Gyeong-su as an adopted son last year and completed the first stage of share succession by gifting 10% of all issued shares this year. The gift tax filing has also already been completed.
Ceragem stated that this was a decision made with consideration for the company's future and management continuity. It was explained that Lee (Chairman)'s usual belief was that it is important to have someone who can grow the company based on insight into the essence of the business and professional managerial expertise. The two have built a management philosophy and trust while sharing Ceragem's growth process for over 20 years.
Born in 1978, Lee (CEO) joined Ceragem as a new employee in 2003 and worked in fields such as strategic planning, marketing, and domestic and international sales. In 2017, he directly operated an agency in Sichuan Province, China, to gain field experience. In 2018, at the request of Lee (Chairman), he took charge of domestic business and pursued a growth strategy. In particular, Lee (CEO) is evaluated for expanding the business, which was centered on spinal care medical devices, into a new market called 'medical home appliances,' and introducing Well Cafe in 2019 to establish experience-based marketing in the domestic market. Lee (Chairman) decided on succession after comprehensively considering Lee (CEO)'s managerial capabilities, execution power, understanding of the organization, and future vision confirmed during this process.
The reason this decision is particularly drawing attention is that it is a rare form of succession in the domestic business world. Most major Korean conglomerates have continued management authority centered on the founder's family. While there are many cases where professional managers are recognized for their managerial abilities and rise to CEO (Chief Executive Officer), it is extremely unusual for a founder to accept a professional manager with no blood relation as a legal child and transfer shares.
There was also a case of succession through adoption in the past at LG Group. The late former LG Group Chairman Koo Bon-moo, who had no son, adopted his nephew Koo Kwang-mo Hyeon (Chairman) in 2004. Subsequently, Koo Gwang-mo (Chairman) took over the group's management authority. However, the two were related by blood as uncle and nephew. This differs from Ceragem's case of choosing a professional manager with no blood ties as the successor. It is known that Lee (Chairman) has one daughter, but she is not interested in management. Consequently, interpretations emerge that instead of the traditional succession method of passing the company to family, they chose a suitable person who well understands the company's business and organization and can lead future growth.
Some point out that there would be tax benefits if succession were carried out through adoption, but Ceragem explained that the 'Business Succession Special Provision' does not apply. The current Tax Special Measures Act applies special provisions for gift tax on business succession to SMEs (small and medium-sized enterprises) that meet certain conditions and mid-sized companies with an average revenue of less than 500 billion won over the previous three fiscal years. Ceragem's consolidated revenue for 2025 is 549.8 billion won, and its average revenue over the last three years also exceeds 500 billion won. A Ceragem official said, "This succession is a decision to prepare Ceragem's future by connecting the founder's entrepreneurial spirit with the capabilities of a next-generation manager verified over more than 20 years."
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