Shareholder derivative lawsuit on behalf of the shareholders of Sewon Precision Industry

   Writer 한누리    l    Hit 55
2024.02.01 원문보기


Hannuri Resolves Shareholder Representative Lawsuit Against Sewon Precision Industry (KOSPI 021820), Securing KRW 91.1 Billion in Damages


Recently, Hannuri successfully concluded a shareholder representative lawsuit filed against the major shareholders of Sewon Precision Industry Co., Ltd., the primary vendor for Hyundai Motor. Through this shareholder representative lawsuit, Sewon Precision has been awarded a total of KRW 91.1 billion in damages from its major shareholders. This outcome reflects Hannuri's dedication and expertise in protecting shareholder rights over the past several years.


In this case, the controlling shareholder and former CEO of Sewon Precision engaged in actions that caused substantial financial damage to Sewon Precision and other affiliated companies within the SEWON Group by tunnelling business opportunities to a family-owned company. As a result, the prosecutors, on December 10, 2018, indicted the former CEO on charges of criminal breach of trust related to his duties, and the court subsequently issued a guilty verdict.


Hannuri's legal team, consisting of Joo-Young Kim, Jin-Sung Lim, Min-Soo Choi and Ju-yeon Kim asserted claims that these executives engaged in illegal activities such as usurpation of corporate opportunities, breach of trust, etc. While vigorously refuting these claims in the initial stages of the lawsuit, the executives voluntarily compensated Sewon Precision with KRW 83.8 billion during the course of the legal proceedings. Additionally, they agreed to a proposed settlement, consenting to pay an additional KRW 7.3 billion, resulting in a total compensation of KRW 91.1 billion to Sewon Precision.


One noteworthy aspect of this lawsuit is the considerable compensation provided by the executives, despite the challenges in proving the exact amount of damages suffered by Sewon Precision, as there were multiple affected and benefiting companies.


Hannuri remains committed to advocating for shareholder rights and pursuing justice in cases that impact individuals on a large scale.