Lee Hwan-seong (65), founder of healthcare specialist Ceragem, has initiated a succession process by adopting a professional manager who is not his biological child as his legal son and gifting shares to him. Industry observers are paying close attention to the fact that this goes beyond simply entrusting management to a professional manager, involving the transfer of ownership rights.
According to Ceragem on the 20th, Lee (Chairman) adopted Director Lee Gyeong-su (CEO) as his 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 decision was made with consideration for the company’s future and management continuity. It was explained that Lee (Chairman) believed it is important to have someone who can grow the company based on insight into the essence of the business and managerial expertise. The two have built a foundation of management philosophy and trust while working together through 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 gained field experience by directly operating an agency in Sichuan Province, China. In 2018, at the request of Lee (Chairman), he took charge of domestic business and pursued growth strategies.
In particular, Lee (CEO) is evaluated for expanding the business, which was centered on spinal management medical devices, into a new market called “medical home appliances,” and for introducing Well Cafe in 2019, establishing experience-based marketing in the domestic market. Lee (Chairman) decided on succession after comprehensively considering Lee (CEO)’s managerial capabilities, execution skills, understanding of the organization, and future vision, which were confirmed during this process.
This decision is drawing particular attention because it is a rare form of succession in Korea’s 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 become Chief Executive Officers (CEOs), it is extremely unusual for a founder to accept a professional manager with no blood relation as a legal child and transfer shares to them.
There was previously a case of succession through adoption at LG Group as well. The late former LG Group Chairman Koo Bon-moo adopted his nephew, Koo Kwang-mo Hyeon (Chairman), as his son in 2004 because he had no sons. 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, where a professional manager with no blood relation was chosen as the successor.
Although Lee (Chairman) has one daughter, she is known to have no interest in management. Consequently, interpretations suggest that instead of the traditional succession method of passing the company to family, he chose a suitable person who well understands the company’s business and organization and can lead future growth.
Some point out that there may be tax benefits from adopting someone as a son for succession purposes, but Ceragem explained that the “family business succession special provision” does not apply. The current Tax Special Measures Act applies gift tax incentives for family business succession to Small and Medium-sized Enterprises (SMEs) that meet certain conditions and mid-sized companies with an average revenue of less than 500 billion won over the previous three fiscal years. However, 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. This means it is far from qualifying for tax benefits.
A Ceragem official said, “This succession has nothing to do with family business succession tax benefits,” adding, “It is a decision to prepare Ceragem’s future by connecting the founder’s entrepreneurial spirit with the capabilities of a next-generation manager who has been verified over more than 20 years.”
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