The owners' reserved portion lawsuit over the inheritance estate worth about 100 billion won left by the late former BYC Co. Chairman Han Young-dae concluded oral arguments roughly three years after it was filed. The case was brought by former Chairman Han's spouse, a person surnamed Kim, and his children against the eldest son, BYC Co. Chairman Han Seok-beom, and the younger brother, Han Hee-seong, head of Hanheung Trading, among others, with the first-instance ruling due at the end of Aug.
The Seoul Central District Court Civil Agreement Division 42 (Presiding Judge Choi Nu-rim, Director General judge) on the 10th held a hearing and closed the proceedings in the lawsuit seeking the return of a reserved portion worth about 30 billion won filed by Ms. Kim and a daughter, a person surnamed Han, against Chairman Han and others. After renewing the oral argument procedure that day and confirming the plaintiffs' modified claim, the court set the ruling for Aug. 28 at 9:35 a.m.
While alive, former Chairman Han helped his children inherit or establish affiliates and transferred assets by selling BYC Co. shares to those affiliates at low prices. There was even an assessment that the total assets former Chairman Han passed to his children during his lifetime amounted to about 1 trillion won. In Dec. 2022, the plaintiffs filed a lawsuit of about 30 billion won against Chairman Han Seok-beom, saying they did not receive the legally guaranteed reserved portion during the inheritance process after former Chairman Han passed away.
The plaintiffs said they partially adjusted their claim because one of the co-plaintiffs died during the lawsuit, changing the inheritance relationships. The plaintiffs' counsel explained that this reflected the fact that the plaintiffs and defendants, who are the deceased's siblings, would newly inherit the relevant reserved portion. They added that the broader framework of the lawsuit and the overall claims remain unchanged.
The case picked up after the former BYC Co. founder chairman died in Jan. 2022. Ms. Kim and others filed suit, saying they did not receive the minimum inheritance share guaranteed by law during the process. The plaintiffs argued that the assets, including affiliate equity, that Chairman Han received from the former chairman during his lifetime were excessive and that the shortfall caused by that should be returned.
From the outset, the biggest issue was the validity of the inheritance waiver. The defendants argued that in Feb. 2022, right after the former chairman's death, the spouse side prepared an inheritance waiver, and they even submitted as evidence KakaoTalk messages in which a secretary guided them on the resident registration, family relation certificate, and seal stamp needed for the waiver procedure. The plaintiffs countered that the waiver was carried out through deceit and is therefore invalid.
The court scheduled a mediation session in Nov. last year and even issued a settlement recommendation early this year to induce an agreement, but the settlement did not materialize due to the defendants' objection.
The issue was how much the lifetime gifts and share transfer by the former chairman would be reflected in the base assets for calculating the reserved portion. The reserved portion is a system that guarantees spouses and children at least one-half of their statutory inheritance share. At this time, special benefits—assets the deceased transferred to a specific heir during their lifetime—are also reflected in the calculation. The shortfall claimed by Ms. Kim's side is known to be around 100 billion won.
Meanwhile, BYC Co. is also in a dispute with the activist fund Truston Asset Management. Truston changed its investment purpose in Dec. 2021 from general investment to management participation, and in Dec. 2022 sent an open letter to BYC Co. management, saying it was the second-largest shareholder holding 8.99% of voting shares. At the time, Truston, with court approval, inspected board minutes from 2016 to May 2022 and raised an issue that due process had not been observed in related-party internal transactions.
Truston tried to enter the board at the 2023 regular shareholders meeting but failed. However, according to Truston's report, BYC Co. subsequently set up an internal transactions committee in Dec. 2022, decided on a 10-for-1 stock split in Mar. 2024, and signed trust contracts to acquire treasury shares worth 3 billion won in Aug. 2024 and 2 billion won in May 2025. Even so, BYC Co. currently has its largest shareholder, Shinhan Edifice, holding 18.56% of common shares, and the total equity of related parties reaches 72.67%, leading to assessments that even if Truston raises issues, there is little room for problems to arise with the Oner side's control itself.