"Return the Karaoke Machine Business"... Kumyoung Loses Asset Return Lawsuit

[Asia Economy Reporter Seongpil Cho] Kumyoung Co., Ltd. filed a lawsuit demanding the return of the karaoke accompaniment machine business and other assets transferred to the acquiring corporation during the business transfer, but lost the case.

According to the legal community on the 8th, the Civil Division 63-2 of the Seoul Central District Court (Presiding Judge Taeil Park) ruled against Kumyoung in the lawsuit filed against Kumyoung Entertainment seeking confirmation of the invalidity of the business transfer contract and the return of assets.

Kumyoung was formerly a karaoke accompaniment machine manufacturer. During the acquisition of a competitor, Taijin Media (now TJ Media), its business conditions worsened, leading to the signing of a transfer contract with Kumyoung Entertainment (formerly Kumyoung Group) in February 2016. At that time, Kumyoung transferred all businesses except for four: real estate rental, traffic signal manufacturing, lighting equipment manufacturing for transportation equipment, and general electric lighting equipment manufacturing, to Kumyoung Entertainment, receiving 9.5 billion KRW as payment. However, Kumyoung filed a lawsuit last year demanding the return of the karaoke accompaniment machine manufacturing business and other assets transferred during the business transfer, claiming that "the transfer contract was concluded without the approval of the shareholders' meeting, violating the Commercial Act, and is therefore invalid."

The court rejected Kumyoung's claims due to lack of evidence and other reasons. The court stated, "It can be acknowledged that an extraordinary shareholders' meeting was held in February 2016 according to the notice of convocation, and the business transfer contract was approved," adding, "There is no evidence to overturn this acknowledgment." Kumyoung argued that "in fact, the extraordinary shareholders' meeting was not held and the minutes were forged," but the court also dismissed this claim for the same reasons.

This content was produced with the assistance of AI translation services.