Namyang Dairy Sale Ultimately Falls Through... Hong Won-sik Says "Will Hold Legal Responsibility"

Notification of Contract Termination Due to Han&Co's Breach of Agreement

Hong Won-sik, chairman of Namyang Dairy Products, is holding a public apology press conference related to the 'Bulgaris incident' at Namyang Dairy Products headquarters in Gangnam-gu, Seoul on the 4th. Last month, Namyang Dairy Products announced at the 'Symposium on Developing Antiviral Foods in the COVID-19 Era' that the Bulgaris product was confirmed to reduce COVID-19 by 77.8%. However, the research results were revealed to have exaggerated the findings from animal 'cell-level' experiments, causing controversy. In response, Hong Won-sik, chairman of Namyang Dairy Products, announced his intention to resign at the public apology press conference on the same day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lim Hye-seon] The sale of Namyang Dairy Products has ultimately fallen through.

Hong Won-sik, chairman of Namyang Dairy Products, announced on the 1st through his legal representative LKB & Partners that he has notified the cancellation of the stock purchase agreement to the contracting party, Hahn & Company (Hahn & Co).

LKB & Partners stated, "Contrary to rumors circulating after the sales contract was signed, the seller, Chairman Hong, did not make any additional demands that were not agreed upon at the time of the contract," adding, "We only requested the fulfillment of matters mutually agreed upon, but the buyer, Hahn & Co, changed their attitude after the contract was signed and refused to fulfill the pre-agreed terms." They continued, "Chairman Hong made efforts to complete the share purchase agreement, including the transfer of management rights of Namyang Dairy Products, but due to Hahn & Co's breach of contract, he was forced to notify the cancellation of the sales contract."

LKB & Partners also emphasized that Hahn & Co violated confidentiality obligations. They stated, "Hahn & Co destroyed the basic trust relationship by making harsh criticisms against the seller without consideration," and "Even before the transaction was finalized, they unjustly interfered in management by acting as the owner of Namyang Dairy Products, including personnel involvement."

They also explained why Chairman Hong remained silent until now. LKB & Partners said, "During the contract validity period, Chairman Hong believed that 'there is a contractual obligation to maintain confidentiality, and it is neither appropriate nor courteous to disclose contract-related matters externally,' so he did not reveal related progress."

Chairman Hong plans to proceed with the resale of Namyang Dairy Products as soon as the dispute is resolved. He stated, "Transferring management rights to a buyer who will further develop Namyang Dairy Products and sincerely treat its employees is my final responsibility as the major shareholder of Namyang Dairy Products."

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