Seongnam Citizens File 'Company Dissolution Order' Request Against Hwacheon Daeyu and Cheonhwa Dongin 1-3 at Court

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] Citizens of Seongnam City, Gyeonggi Province, have filed a petition with the court requesting the dissolution of Hwacheon Daeyu Asset Management (Hwacheon Daeyu) and its affiliates Cheonhwa Dongin 1 to 3, which have been identified as the pinnacle of the preferential treatment allegations in the Daejang-dong development.

On the 12th, lawyer Lee Ho-seon, representing six Seongnam citizens including Mr. Park, filed a petition for the dissolution of Hwacheon Daeyu and Cheonhwa Dongin 1 to 3 with the Suwon District Court.

Lawyer Lee stated, "Article 176 of the Commercial Act lists 'when the company's establishment purpose is illegal' as one of the grounds for company dissolution orders," adding, "It is clear that the companies involved were not established for lawful investment and real estate development but for the illicit and improper acquisition of private gains, so they should rightfully be dissolved."

He continued, "Cheonhwa Dongin 1 to 3 share the same address as Hwacheon Daeyu and do not have facilities or personnel for business operations," adding, "All they have done is use corporate bank accounts to receive large dividends, which also falls under the dissolution grounds of 'non-commencement or suspension of business.'

Furthermore, he said, "Even if the applicants, who are citizens of Seongnam, are not considered 'interested parties,' we ask the court to examine the grounds for the petition and issue a dissolution order ex officio," warning, "If the court hesitates, it would be tantamount to the judiciary neglecting the rampant corruption and crime."

Lawyer Lee plans to file a similar dissolution petition for Cheonhwa Dongin 4 to 7, located in Seoul, with the Seoul Central District Court following this application.

Meanwhile, last month, Lawyer Lee, representing nine Seongnam citizens including Mr. Park, filed a lawsuit against the special purpose company (SPC) 'Seongnam Utddeul' for the Daejang-dong development, seeking to nullify the dividend resolution.

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