Legal battle continues between Mirae Asset and SME head

The ongoing lawsuit raised in 2016 by a Coffee Bean and Tea Leaf franchise in China against Mirae Asset Financial Group and Chairman Park Hyeon-joo has become more complicated, as the franchise’s CEO has filed another lawsuit against the group’s private equity CEO and an executive on perjury charges.

The legal battle dates back to May 2014 when Kwon Joon, CEO of TNPI HK, sued Mirae Asset Chairman Park Hyeon-joo for “unlawfully” using the franchise’s confidential report on the Chinese market to acquire a stake in US coffee brand Coffee Bean and Tea Leaf in September 2013.

TNPI obtained the Coffee Bean franchise rights in China from US firm CBTL Franchising in 2012.

In 2014, the prosecution dropped the investigation on Park, citing a lack of evidence.

However, Kwon filed another civil lawsuit in 2016 against Mirae Asset, Chairman Park and Vice Chairman Jeong Sang-kee for allegedly using their position as a stakeholder of Coffee Bean to take away TNPI’s franchise rights in China and in Hong Kong.

The eighth trial is currently in progress at the Seoul Central District Prosecutor’s Office.

In a fresh press release, Kwon said he sued Mirae Asset Private Equity CEO Ryu Jung-hun and private equity investment Executive Jang Won-jae for allegedly telling untruths in a court in Seoul in April.

“Ryu told me in April 2013 that he directly met officials of E Land, Lotte and CJ to seek a stake in Coffee Bean’s head office. But later, he intentionally told a lie (in April in a court this year),” Kwon said.

In response to an enquiry about the trial, a Mirae Asset spokesperson said Mirae Asset has only a 18 percent stake in Coffee Bean and is therefore not in a position to be involved in the US head office’s decision on distributing franchise rights. 

“The US head office and TNPI CEO Kwon Joon mutually ended their contract after reaching a legally-binding agreement. We do not understand why he is pursuing a civil lawsuit against us since we do not have any authority (in terms of franchise rights),” Mirae Asset spokesperson said in a written note.

“What we obtained (from TNPI) about the coffee market in China was a general industry report, not a confidential one, which was why the prosecution dropped the investigation (in 2014).”

By Kim Yoon-mi (yoonmi@heraldcorp.com)