Seo Jung-jin used to borrow money from loan sharks, pledging his organs to get much needed funds for his upstart drugmaker. Now he’s the second-richest person in South Korea, trailing only Samsung Electronics’ chairman.
The founder of Celltrion's fortune has swelled to $10 billion (Dh36.7bn) as shares of his company, which is developing a Covid-19 treatment, have almost doubled this year.
His rise is extraordinary and represents a shift in the country’s business elite. While family-run conglomerates touch almost every aspect of life in South Korea, more corporate founders making fortunes in non-traditional sectors like Mr Seo have emerged. As the coronavirus pandemic upended people’s lives, the trend has only become more pronounced, with the chaebols losing more of their luster.
“Boundaries between industries are getting blurry,” said Park Ju-gun, president of corporate watchdog CEOScore in Seoul. “Those who sit still with traditional businesses don’t cope well with the change. The pandemic has accelerated the trend.”
Born to a family who sold coal briquettes, Mr Seo, 62, worked as a taxi driver to get himself through Konkuk University in Seoul. After studying industrial engineering, he rose through the ranks of Daewoo Motor, before losing his job when the car maker went bust following the Asian financial crisis. In 2000, he set up a company called Nexol with former Daewoo colleagues to explore business opportunities. It eventually became what is now Celltrion’s global marketing affiliate, Celltrion Healthcare.
He became interested in biosimilars – medical products similar to drugs that are already approved – in the early 2000s, betting that ageing societies will need alternatives to costly medicines. Celltrion, started in 2002, ran into financial trouble in 2004 after the failure of some vaccine clinical trials, prompting Mr Seo to go to loan sharks, according to a Financial Times article in 2012 that a Celltrion spokesman confirmed. The company is now a giant that develops biosimilars such as monoclonal antibody Remsima of Johnson & Johnson's Remicade.
As in most of the rest of the world, South Korean tech and pharma stocks have soared in 2020, with Celltrion up 78 per cent. The stock has risen almost five-fold in the past five years.
Mr Seo’s net worth is based on his holdings in Celltrion and Celltrion Healthcare. Shares he pledged as collateral were removed from the calculation. He declined an interview for this story, and a company representative declined to comment on his net worth.
Last year, Mr Seo said he would step down from management in 2020, explaining that remaining as chairman beyond retirement age would make the company a “kingdom”, according to an interview with local newspaper Hankyoreh.
“The chairman is a title, not a king,” he said.
While South Korea’s wealthiest person remains Samsung Electronics chairman Lee Kun-hee, the families behind some of the largest conglomerates have dropped from the Bloomberg Billionaires Index of the world’s 500 richest people.
Hyundai Motor Group’s Mong-Koo Chung and SK Group’s Chey Tae-won, as well as cosmetic maker Amorepacific Group’s Suh Kyung-bae were among the nation’s top five wealthiest people five years ago. They’ve since lost more than $9bn combined.
Newcomers such as Mr Seo and tech entrepreneurs have replaced them.
Gamemaker Nexon’s Kim Jung-ju has become South Korea’s third-richest person with a $7.8bn fortune, while Brian Kim, the founder of social messaging app Kakao Corp, entered the wealth ranking for the first time this year.
His company’s businesses encompass ride-hailing and payment services, and its shares have more than doubled since a March low as limited person-to-person interactions during the pandemic have increased demand for its services. He has the nation’s fifth-biggest fortune, $5.1 billion, just after Samsung Electronics’ Lee Jae-yong.
It’s only in certain sectors like biopharma and tech that the new rich can flourish as traditional industries require huge capital to break into, according to CEOScore’s Mr Park. That’s why inherited wealth will not go away, he added.
Killing of Qassem Suleimani
KILLING OF QASSEM SULEIMANI
When Umm Kulthum performed in Abu Dhabi
Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.
UAE currency: the story behind the money in your pockets
Top tips to avoid cyber fraud
Microsoft’s ‘hacker-in-chief’ David Weston, creator of the tech company’s Windows Red Team, advises simple steps to help people avoid falling victim to cyber fraud:
1. Always get the latest operating system on your smartphone or desktop, as it will have the latest innovations. An outdated OS can erode away all investments made in securing your device or system.
2. After installing the latest OS version, keep it patched; this means repairing system vulnerabilities which are discovered after the infrastructure components are released in the market. The vast majority of attacks are based on out of date components – there are missing patches.
3. Multi-factor authentication is required. Move away from passwords as fast as possible, particularly for anything financial. Cybercriminals are targeting money through compromising the users’ identity – his username and password. So, get on the next level of security using fingertips or facial recognition.
4. Move your personal as well as professional data to the cloud, which has advanced threat detection mechanisms and analytics to spot any attempt. Even if you are hit by some ransomware, the chances of restoring the stolen data are higher because everything is backed up.
5. Make the right hardware selection and always refresh it. We are in a time where a number of security improvement processes are reliant on new processors and chip sets that come with embedded security features. Buy a new personal computer with a trusted computing module that has fingerprint or biometric cameras as additional measures of protection.
Company Profile
Company name: Big Farm Brothers
Started: September 2020
Founders: Vishal Mahajan and Navneet Kaur
Based: Dubai Investment Park 1
Industry: food and agriculture
Initial investment: $205,000
Current staff: eight to 10
Future plan: to expand to other GCC markets
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
If you go
The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.
The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).
When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.
Killing of Qassem Suleimani
More on animal trafficking
Results:
6.30pm: Mazrat Al Ruwayah (PA) | Group 2 | US$55,000 (Dirt) | 1,600 metres
Winner: AF Al Sajanjle, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
7.05pm: Meydan Sprint (TB) | Group 2 | $250,000 (Turf) | 1,000m
Winner: Blue Point, William Buick, Charlie Appleby
7.40pm: Firebreak Stakes | Group 3 | $200,000 (D) | 1,600m
Winner: Muntazah, Jim Crowley, Doug Watson
8.15pm: Meydan Trophy Conditions (TB) | $100,000 (T) | 1,900m
Winner: Art Du Val, William Buick, Charlie Appleby
8.50pm: Balanchine Group 2 (TB) | $250,000 (T) | 1,800m
Winner: Poetic Charm, William Buick, Charlie Appleby
9.25pm: Handicap (TB) | $135,000 (D) | 1,200m
Winner: Lava Spin, Richard Mullen, Satish Seemar
10pm: Handicap (TB) | $175,000 (T) | 2,410m
Winner: Mountain Hunter, Christophe Soumillon, Saeed bin Suroor
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
Ahmed Raza
UAE cricket captain
Age: 31
Born: Sharjah
Role: Left-arm spinner
One-day internationals: 31 matches, 35 wickets, average 31.4, economy rate 3.95
T20 internationals: 41 matches, 29 wickets, average 30.3, economy rate 6.28
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Remaining Fixtures
Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final
How The Debt Panel's advice helped readers in 2019
December 11: 'My husband died, so what happens to the Dh240,000 he owes in the UAE?'
JL, a housewife from India, wrote to us about her husband, who died earlier this month. He left behind an outstanding loan of Dh240,000 and she was hoping to pay it off with an insurance policy he had taken out. She also wanted to recover some of her husband’s end-of-service liabilities to help support her and her son.
“I have no words to thank you for helping me out,” she wrote to The Debt Panel after receiving the panellists' comments. “The advice has given me an idea of the present status of the loan and how to take it up further. I will draft a letter and send it to the email ID on the bank’s website along with the death certificate. I hope and pray to find a way out of this.”
November 26: ‘I owe Dh100,000 because my employer has not paid me for a year’
SL, a financial services employee from India, left the UAE in June after quitting his job because his employer had not paid him since November 2018. He owes Dh103,800 on four debts and was told by the panellists he may be able to use the insolvency law to solve his issue.
SL thanked the panellists for their efforts. "Indeed, I have some clarity on the consequence of the case and the next steps to take regarding my situation," he says. "Hopefully, I will be able to provide a positive testimony soon."
October 15: 'I lost my job and left the UAE owing Dh71,000. Can I return?'
MS, an energy sector employee from South Africa, left the UAE in August after losing his Dh12,000 job. He was struggling to meet the repayments while securing a new position in the UAE and feared he would be detained if he returned. He has now secured a new job and will return to the Emirates this month.
“The insolvency law is indeed a relief to hear,” he says. "I will not apply for insolvency at this stage. I have been able to pay something towards my loan and credit card. As it stands, I only have a one-month deficit, which I will be able to recover by the end of December."
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APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
