Court's First Hearing on "Dissolve Cheonhwa Dongin No. 4"... "The Purpose of Establishment Itself Is Illegal"

[Asia Economy Reporter Kim Hyung-min] A hearing regarding the dissolution order application for Cheonhwa-dongin No. 4, a related company of Hwacheon Daeyu Asset Management (Hwacheon Daeyu), which is suspected of reaping enormous profits from the Daejang-dong development project, was held on the 12th among multiple dissolution order applications filed against Hwacheon Daeyu and its affiliates.

The Seoul Central District Court Civil Division 50 (Presiding Judge Song Kyung-geun) held a closed hearing on the 12th for the case filed by five Seongnam citizens, including Song Mo, requesting the dissolution of Cheonhwa-dongin No. 4. Cheonhwa-dongin No. 4 is known to be effectively owned by lawyer Nam Wook, who has been indicted and detained.

Lee Ho-seon, a professor of law at Kookmin University and attorney representing the applicants, stated after the hearing, "The purpose of the company's establishment itself is illegal, and since it has not actually engaged in any activities, we are requesting a dissolution order under the Commercial Act."

Regarding Cheonhwa-dongin No. 4's position that Seongnam citizens have no standing to apply because they have no interest in the company, Attorney Lee argued, "Seongnam Eutteul functions like a quasi-public institution, and (Cheonhwa-dongin No. 4) is a shareholder constituting a public official entrusted party, committing illegal acts, so ordinary citizens also have an interest."

Attorney Lee disclosed the initial shareholder registers of Cheonhwa-dongin Nos. 5 and 7 on that day, stating, "Although it is believed that the seven Cheonhwa-dongin companies are owned by individuals such as Nam Wook and Jung Young-hak, the documents show that Hwacheon Daeyu is the sole investor in these shell companies. If the individual companies were later transferred to individuals like Nam Wook, the issue is whether appropriate transfer or gift taxes were paid, and Hwacheon Daeyu could be charged with breach of trust for arbitrarily distributing its own shares."

The 'Daejang-dong Corruption Profit Recovery Group,' a civic and expert group in which Attorney Lee participates, filed dissolution order applications against Hwacheon Daeyu and Cheonhwa-dongin Nos. 1 to 7 at the Suwon District Court and Seoul Central District Court last October.

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