Han&Co "Lawsuit Against Former Namyang Dairy Products Chairman Is a Rehash, Will Take Legal Action"

Former Chairman Hong Won-sik Dismisses Fraud Allegations as Already Settled by Supreme Court Ruling

Hahn & Company (Hahn & Co), a private equity firm and the largest shareholder of Namyang Dairy Products, has announced a strong response to the complaint filed by former Namyang Dairy Products Chairman Hong Won-sik's side, calling it a "rehashed claim" of matters already legally decided.

On the 29th, Hahn & Co issued a statement expressing "deep regret over the complaint filed by former Chairman Hong Won-sik's side against our executives and employees the previous day," and stated, "We will take all legal actions and measures against such attempts."

Signboard at the entrance of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul [Image source=Yonhap News]

Earlier, former Chairman Hong's side filed a complaint with the Seoul Central District Prosecutors' Office against Hahn & Co CEO Han Sang-won and Ham Chun-seung, CEO of PH & Company and intermediary of the Stock Purchase Agreement (SPA), on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

Hong's legal representative claimed, "The accused deceived former Chairman Hong by promising to guarantee a certain position that would contribute to the normalization of management even if the Namyang Dairy Products shares were transferred to Hahn & Co."

In response, Hahn & Co rebutted, "Hong's side claimed that we promised to appoint former Chairman Hong as an advisor and guarantee certain treatment but failed to do so, causing damages. However, this is not only untrue but has already been rejected through three years of litigation."

They added, "In particular, the Supreme Court stated in January this year that 'there is no error in the lower court's judgment that the plaintiff (Hahn & Co) did not make a firm promise regarding the treatment of the defendant's (Hong's side) family.' Therefore, this complaint is ultimately nothing more than a 'baseless lawsuit.'"

Meanwhile, Hahn & Co became the largest shareholder of Namyang Dairy Products after entering into a Stock Purchase Agreement (SPA) to acquire 53.08% of the shares from former Chairman Hong Won-sik's family for 310.7 billion KRW, following a Supreme Court ruling in January amid legal disputes with the owner family.