Namyang Dairy Products Files Counterlawsuit Against Hahn & Co... "Pay 31 Billion KRW in Compensation"

Hong Won-sik, chairman of Namyang Dairy Products, held a public apology press conference on the 4th at Namyang Dairy Products headquarters in Gangnam-gu, Seoul, regarding the 'Bulgaris incident.' 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, expressed his intention to resign during the public apology press conference on the same day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Seungjin Lee] The Namyang Dairy Products sale cancellation saga is heading toward a catastrophe. When Hahn & Company (Hahn & Co) filed a contract enforcement lawsuit against Namyang Dairy Products Chairman Hong Won-sik and other sellers of the stock purchase agreement, Namyang Dairy Products countered by filing a damages claim lawsuit against Hahn & Co.

On the 23rd, LKB & Partners, the legal representative of Namyang Dairy Products, stated in a press release that they filed a penalty claim seeking approximately 31 billion KRW in damages against Hahn & Co 19ho Limited, the buyer under the stock purchase agreement, at the Seoul Central District Court. They also filed a tort damages claim against Hahn & Co representatives Han Sang-won, Kim Kyung-gu, and Yoon Yeo-eul, who bear substantial responsibility for the stock purchase agreement, for part of the amount.

According to LKB & Partners, this claim is a follow-up procedure to the termination of the stock purchase agreement on the 1st, and under the contract provisions, the party responsible for the contract termination is liable for damages amounting to approximately 31 billion KRW.

Regarding Hahn & Co’s fault in contract termination, LKB & Partners asserted, “As evidenced by the fact that there was no deposit at all, this contract was an extremely unequal contract favoring Hahn & Co. Hahn & Co failed to fulfill matters that had been mutually agreed upon in advance, engaged in unjust management interference, disclosed contract or negotiation details to the media, and even violated confidentiality obligations.”

Regarding the lawsuit filed by Hahn & Co, they responded, “Starting about a week before the transaction closing deadline, Hahn & Co filed a stock transfer claim lawsuit and a provisional injunction to prohibit stock disposal against the sellers, but these were not lawful claims and continued until the contract was terminated on September 1.”

LKB & Partners emphasized that Chairman Hong’s intention to sell remains firm, explaining, “We will promptly end the legal dispute with Hahn & Co, seek a third-party sale to further develop Namyang Dairy Products, and transfer management rights to a buyer who will sincerely treat the employees.”

Meanwhile, on the 23rd of last month, Hahn & Co filed a contract enforcement lawsuit against Chairman Hong and other sellers under the stock purchase agreement. At that time, Hahn & Co explained the background of the lawsuit, stating, “The lawsuit was inevitable due to the sellers’ unreasonable delays in performance, excessive demands, and indications of possible contract termination.”

Namyang Dairy Products and Hahn & Co signed the stock purchase agreement in May, but both sides failed to close the gap by the deal closing deadline of August 31. At the extraordinary shareholders’ meeting of Namyang Dairy Products held on the 14th, the sale failure was officially confirmed.

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