Management Rights Dispute Erupts at 1 Trillion Won Busan Family Business: "Stole Parents' Company" vs. "Normalizing Management" in Civil and Criminal Battle

A family-owned business in Busan is embroiled in a civil and criminal dispute as a conflict over management rights has escalated into issues surrounding fund transfers and corporate control.

This enterprise group was founded by the parents and operates 13 affiliates, growing primarily through real estate development and leasing businesses. It reportedly holds assets worth approximately 1 trillion won, with the parent and children each holding shares and serving as CEOs of the respective group companies.

The parents claim that, around the Lunar New Year holidays, their son removed corporate seals, contracts, accounting records, computer equipment, and some employees from the affiliates, after which communication became difficult. As a result, they believe that the existing decision-making process for fund execution and contract approvals was disrupted.

The transfer of funds is also a major point of contention. The parents assert that a loan of approximately 6 billion won was executed by a company where the son is not the CEO, and that a total of about 17 billion won was transferred to other affiliates, including this loan. They have also raised suspicions that internal approval procedures were not adequately observed during this process.

Additionally, they argue that amid ongoing litigation over construction payments totaling around 40 billion won, changes in credit management practices have affected internal controls and external trust. The removal of corporate seals and documents, as well as the transfer of employees, have reportedly created difficulties in accounting and tax responses.

On the other hand, the son claims that these actions were intended to normalize operations and improve the company's financial structure. He maintains that these were measures to correct company management amid internal conflict.

The son also states that parental consent was obtained for all management decisions, including loans. He further claims that, despite the parents' coercive behavior—such as verbal abuse—over a long period, employees followed the legal CEO’s management as required by law.

The son maintains that he made a legitimate decision to exercise management rights in order to ensure proper company operations. It is reported that roughly 10 employees are currently following the son's management as CEO and have expressed their willingness to testify as witnesses in the litigation.

With both sides making sharply conflicting claims, the parents have filed criminal complaints for obstruction of business, breach of trust, and embezzlement. They have also filed for an injunction to suspend fund usage and the execution of CEO duties.

Currently, the case is under investigation by the Sasang Police Station in Busan for allegations such as theft and obstruction of business, and by the Busan Metropolitan Police Agency for fraud and embezzlement. In addition, the Changwon District Court is handling a civil lawsuit regarding the suspension of CEO duties.

The legitimacy of the fund transfers, the scope of the CEO's authority, and compliance with internal decision-making procedures are expected to be the key issues at stake.

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