All Namyang Dairy Products Employees to Receive Company Shares Worth 1 Million Won After Profit Turnaround

Hahn & Company Holds Namyang Dairy Board Meeting and Makes Decision
Equal Share Allocation Regardless of Position or Years of Service

Private equity fund (PEF) operator Hahn & Company will grant company shares worth 1 million won each to all employees of Namyang Dairy Products, a company in which it has invested. The initiative aims to share the success of turning the company profitable after the acquisition with its members.

On July 9, Hahn & Company announced that at a Namyang Dairy Products board meeting held earlier that morning, it was decided to award company shares worth 1.6 billion won as performance bonuses to employees and to cancel treasury shares worth approximately 9.8 billion won.

The recipients are all 1,546 full-time employees, each of whom will receive 16 shares regardless of position or years of service. Based on the previous day's closing price, this amounts to about 1.04 million won per person.

The company has also decided to cover the entire tax burden for employees resulting from the share grant. There are no restrictions on the disposal of the awarded shares, so employees are free to decide when and how to sell them.

Previously, in 2021, following controversy over Namyang Dairy Products' announcement of the "Bulgarius COVID-19 suppression effect," Hahn & Company signed a stock purchase agreement with former chairman Hong Wonshik. Afterward, a legal dispute with Hong, who failed to fulfill the contract due to a change of mind, lasted for more than two years. In January last year, Hahn & Company secured management control after a final victory in the Supreme Court. Since participating in management, the company achieved a turnaround to profitability in the third quarter of last year and has continued to post profits since then.

A representative from Hahn & Company stated, "We made this decision to share the achievements made by all Namyang Dairy Products employees who overcame difficulties caused by the embezzlement and breach of trust allegations against the founding family," adding, "We hope that the Namyang Dairy Products family will share in the fruits of future growth through this share grant."