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[Alpha Biz= Reporter Kim Jisun] Prosecutors have summoned Hong Won-sik, the former chairman of Namyang Dairy Products, for questioning over allegations of embezzling company funds worth hundreds of millions of Korean won.

According to legal sources on November 18, the Seoul Central District Prosecutor's Office's Fair Trade Investigation Division, led by Chief Prosecutor Kim Yong-sik, called in Hong for questioning as a suspect.

Earlier, in August, Namyang Dairy had filed a complaint, accusing Hong and three former executives of embezzling and breaching trust involving approximately 201 billion won, or 2.97% of the company's capital. The company suspects that these funds were misappropriated during their time in office.

The investigation is focusing on several allegations, including receiving kickbacks from suppliers in exchange for business contracts, and diverting some of the export proceeds through intermediary companies during overseas transactions. Additionally, prosecutors are looking into allegations that Hong misused company funds for personal expenses, including cemetery management, overseas travel, and purchasing artworks, as well as using company vehicles and credit cards for private purposes.

However, Hong has reportedly denied all charges during the investigation.

The prosecutors have also recently summoned family members of Hong, who are accused of misappropriating company funds, and it is understood that most of them have acknowledged the allegations.

Once the questioning of Hong is concluded, prosecutors are expected to consider whether to take further action regarding his detention.

 

 

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