Court Upholds Decision to Prohibit Namyang Dairy Products and Daeyu from Conditional Management Rights Sale Agreement

Signboard at the entrance of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul. Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] The court has once again prohibited Hong Wonsik, chairman of Namyang Dairy Products, who is in a legal dispute with Hahn & Company (Hahn & Co), from fulfilling the 'Mutual Cooperation Implementation Agreement' made with Daeyu Holdings.

The 50th Civil Division of the Seoul Central District Court issued a ruling on the 15th approving the original decision in the injunction objection case filed by Chairman Hong against Hahn & Co.

Previously, Namyang Dairy Products and Hahn & Company signed a stock purchase agreement in May last year, but the contract was terminated in early September, leading to a lawsuit. Hahn & Co won all injunction lawsuits filed against Chairman Hong’s side, including injunctions prohibiting stock disposal, exercising voting rights, and contract fulfillment.

In November last year, Daeyu Holdings signed a cooperation implementation agreement with Chairman Hong’s side and received a reservation right to complete the purchase of 378,938 shares of Namyang Dairy Products for 310.7 billion KRW.

In December last year, Hahn & Co filed an injunction with the court to prohibit Chairman Hong and Daeyu Holdings from fulfilling the agreement, and the court accepted this request.

Chairman Hong’s side opposed this by filing an injunction objection, but the court judged that the original decision accepting Hahn & Co’s application was valid.

The main lawsuit regarding the stock transfer filed by Hahn & Co against Chairman Hong and others is currently being heard at the Seoul Central District Court.

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