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There was a case in which Namyang Dairy's chairman Hong Won-sik and his family, who were going to give up management at the end of a series of social issues, signed a contract to sell their stake to a private equity fund, but then overturned it.

In the related lawsuit, the court of first instance ruled that Namyang Dairy should hand over the stake as per the contract.



Correspondent Hong Young-jae.



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Last year, Namyang Dairy was criticized by public opinion for making false and exaggerated advertisements as if the dairy product Vulgaris had the effect of suppressing COVID-19.



Namyang Dairy Chairman Hong Won-sik promised to give up management rights with an apology to the public.



[Hong Won-sik / Namyang Dairy Chairman (May of last year): I will step down from the position of chairman.

Also, I will not pass on the management right to my children.]



After that, Chairman Hong signed a contract to hand over 53% of the family's stake to Han & Company, a private equity fund manager, for 310.7 billion won, but abruptly notified the cancellation of the contract.



Namyang Dairy's cafe brand Baekmidang was excluded from the sale, and the promise to treat the major shareholder's family was not kept, and Kim & Chang's lawyers represented both sides in the contract process, arguing that it was unfair.



At the first trial held today (the 22nd), the court did not accept the argument of the Hong family.



The evidence submitted by Namyang Dairy did not prove that there was a prior appointment, and Namyang Dairy's lawyer only assisted in the contract, so it was judged that it could not be regarded as a representative of both parties.



In the course of the trial, it was also revealed that Chairman Hong claimed that he had received an annual salary of 1.6 billion won and a 15th-floor office, secretary and vehicle, driver, corporate card, membership, etc. from the private equity fund.



It is questionable whether the public apology for giving up management rights was sincere.



Namyang Dairy said it would appeal immediately.



(Video coverage: Seol Min-hwan, video editing: Jeon Min-gyu, CG: Jo Su-in)