[Asia Economy Reporter Seungjin Lee] The private equity firm Hahn & Company, which is acquiring Namyang Dairy Products, will succeed the employment of Namyang Dairy employees without artificial restructuring.
According to Hahn & Company on the 4th, they will strengthen Namyang Dairy's competitiveness by succeeding employment without artificial restructuring. Since this acquisition is a genuine sale without conditions such as call options or preemptive rights, the plan is to focus on improving Namyang Dairy's governance structure and stable operation through employment succession. They denied allegations of a 'parking deal,' a contract disguised as transferring corporate management rights and repurchasing shares after a certain period.
Hahn & Company will introduce the executive officer system, which was first applied to investment companies in Korea, to Namyang Dairy. They plan to enhance transparent management, administration, and monitoring functions. This system delegates decision-making and execution authority regarding business from the board of directors to executive officers. It is a system where the board supervises the executive officers, improving governance and increasing management efficiency.
Hahn & Company stated, "Based on our experience of growing major domestic investment companies into leading Korean enterprises through performance improvement, we will strengthen Namyang Dairy's competitiveness," adding, "We plan to introduce the executive officer system to Namyang Dairy to enhance transparent management, administration, and monitoring functions."
Meanwhile, the police are accelerating their investigation into Namyang Dairy. On the 2nd, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency summoned Mr. A, head of the Antiviral Immunology Research Center at Namyang Dairy, for questioning. In April, Mr. A announced at a symposium hosted by Namyang Dairy that their fermented milk product, Bulgari, had preventive effects against COVID-19. The police are reportedly verifying the circumstances of the announcement and whether there was a promotional purpose.
Earlier, the Ministry of Food and Drug Safety reported Namyang Dairy to the police for violating the Food Labeling and Advertising Act. This was because Bulgari was announced to have COVID-19 preventive effects without undergoing animal or clinical trials. The Ministry believes that Namyang Dairy held the symposium not for purely academic purposes but for promotional reasons.
On April 30th, the police conducted raids at six locations, including Namyang Dairy's headquarters in Gangnam-gu, Seoul, and the Sejong Research Institute. They plan to summon former Namyang Dairy CEO Kwangbeom Lee for questioning soon.
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