Namyang Dairy stock loses nearly 11% amid prolonged dispute

Namyang Dairy Products Co. headquarters in Seoul [Photo by Han Joo-hyung]

Shares of Namyang Dairy Products Co. closed nearly 11 percent lower on Tuesday following the prolonged legal dispute over the sale of the company between its Chairman Hong Won-sik and Hahn & Co.

Namyang Dairy Products closed at 437,000 won ($345.2) on Tuesday, down 10.82 percent from the previous session. The plunge is likely to have come following the Supreme Court’s decision to allow the prolonged dispute over the sale of the company between Hahn & Co. and Hong to extend to the highest court.

The Supreme Court announced on Tuesday that the period to dismiss the appeal case between Hahn & Co. and Hong has expired.

The top court can dismiss an appeal case without additional hearings, and such a decision should be made within four months of receiving the appeal records.

As the Supreme Court did not dismiss the appeal filed by Hong within the four-month period, the legal battle has now been extended at the top court.

The ongoing legal dispute between the chairman and Hahn & Co. has had a negative impact on the stock price of the dairy company.

Namyang Dairy Products’ stock price has fallen more than 30 percent over the past five months from the 640,000 won range in February.

Hong is also going through another dispute with activist fund Tcha Partners Asset Management. The dairy company’s auditor, Sim Hye-seop, who was appointed following a proposal from Tcha Partners, has filed a lawsuit claiming damages of around 5 billion won against Hong.