Hanyang "Lotte Construction's Claim as Largest Shareholder of Gwangju Central Park District 1 is Financial Fraud"

Hanyang strongly opposed Lotte Construction's claim that it is the largest shareholder of the special purpose corporation (SPC) related to the 'Central Park District 1 Private Park Special Project,' which is creating the largest private park in Gwangju Metropolitan City. It also announced strong legal actions, including criminal charges, against related parties.

On the 1st, Hanyang issued a press release emphasizing that despite the court ruling that Hanyang is the largest shareholder of the SPC Bitgoeul Central Park Development Co., Ltd., Lotte Construction's claim that it is the largest shareholder by securing 49% of the SPC shares is a 'financial fraud' aimed at nullifying the court ruling.

According to Hanyang, the Gwangju District Court ruled on the 26th of last month in favor of Hanyang in a lawsuit for damages due to breach of a special shareholder agreement filed against Woobin Industry. The court ordered Woobin Industry to pay Hanyang 49 billion KRW in damages and transfer all 25% of the SPC shares it holds. Accordingly, Hanyang secured a total of 55% of the SPC shares by adding the existing 30% of SPC shares it held, becoming the largest shareholder of the SPC as recognized by the court.

However, Lotte Construction announced that at the SPC board meeting convened the previous day, it received approval for the shareholder change and claimed it became the largest shareholder of the SPC by acquiring Woobin Industry's 49% SPC shares and friendly shares.

Hanyang pointed out that in response to Lotte Construction's claim, "Woobin Industry, anticipating defeat in the lawsuit, along with Lotte Construction and Hub Asset Management, declared a deliberate default of 10 billion KRW," and "thereafter, Lotte Construction, following a predetermined sequence, executed a pledge right and acquired 49% of Woobin Industry's SPC shares, becoming the largest shareholder of the SPC."

In particular, it criticized that Lotte Construction and others had already secured 995 billion KRW in project financing (PF) and could have repaid the 710 billion KRW bridge loan but did not notify Hanyang and the other SPC shareholders such as Park M and KNG Steel of this fact.

It added, "Lotte Construction excluded Park M's shares (21%), with whom it had jointly established a pledge right, and only acquired Woobin Industry's shares (25%)?which the court ordered to be transferred?and KNG Steel's shares (24%), which won a shareholder rights confirmation lawsuit against Woobin Industry, through a bizarre execution of pledge rights," criticizing, "This can only be interpreted as a stock seizure act and financial fraud."

Hanyang stated, "If Lotte Construction, selected as the construction company led by Woobin Industry, which drove the SPC into dysfunction through unilateral operation and illegal, illicit, and expedient methods, becomes the largest shareholder of the SPC and carries out the project, normal project management through separation of implementation and construction, such as contract and change management and fund management, will become impossible," adding, "There is a concern that the private park special project, which should be promoted as a public interest project, will be distorted into a housing project for Lotte Construction's profit."

It continued, "Recognized as the largest shareholder according to the court ruling, Hanyang will take responsibility for managing the project, normalize the SPC members, and strive to ensure the project proceeds transparently."

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