Dispute Over Three Artworks Including Liechtenstein
Combined Value of the Three Pieces Reported to Be Hundreds of Billions of Won
Namyang Dairy Products is reportedly undergoing legal proceedings with former Chairman Hong Won-sik's side over high-priced artworks. Namyang Dairy Products is said to be conducting legal procedures to reclaim the artworks. On the 13th, Namyang Dairy Products announced, "We are proceeding with legal procedures to reclaim the artworks and plan to do our best to restore the company's damages."
Signboard at the entrance of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul [Photo by Yonhap News]
Recently, Namyang Dairy Products sent a cooperation letter to major domestic galleries requesting caution in the sale of three works: Roy Lichtenstein's Still Life with Lamp (1976), Alexander Calder's Untitled (1971), and Donald Judd's Untitled (1989). They stated, "These works were purchased by our company in the past, but the ownership was immediately transferred to former Chairman Hong Won-sik's side," and emphasized, "We believe that the sale contract is invalid because former Chairman Hong's side did not comply with proper procedures during the purchase process." Furthermore, they added, "We are proceeding with legal procedures to receive these works and will do our best to restore the company's damages through this process."
Namyang Dairy Products filed a petition with the court to prohibit the disposal of the three artworks owned by former Chairman Hong, and it is reported that the injunction was recently granted. The combined value of these three works is said to be in the hundreds of billions of Korean won, and it has been confirmed that Namyang Dairy Products purchased them with company funds during the 2000s to 2010s, after which former Chairman Hong repurchased them.
Artworks that Namyang Dairy Products claimed to have purchased but whose ownership had been transferred [Photo by Namyang Dairy Products]
Previously, former Chairman Hong Won-sik, the eldest son of the late Namyang Dairy Products founder Hong Doo-young, experienced a management rights dispute with Hahn & Company (Hahn & Co) in 2021 due to the "Bulgaris incident." Subsequently, at the end of January, following a Supreme Court ruling, the largest shareholder of Namyang Dairy Products changed to the private equity fund Hahn & Co. This marked the end of Namyang Dairy Products' 60-year family-owned management system. Although former Chairman Hong left Namyang Dairy Products after the ruling, legal disputes continue.
On the 2nd of last month, Namyang Dairy Products publicly announced that it filed a complaint against former Chairman Hong Won-sik and three former executives on charges of embezzlement (violation of the Act on the Aggravated Punishment of Specific Economic Crimes). The embezzlement amount is approximately 20.1 billion Korean won. Conversely, former Chairman Hong filed a lawsuit against the company in May demanding retirement pay amounting to about 44.4 billion Korean won.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
