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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] The prosecution has initiated a full-scale investigation into Hong Won-sik, the former chairman of Namyang Dairy Products, who is suspected of embezzling around 20 billion KRW. The Seoul Central District Prosecutors' Office has assigned the case, which includes allegations against Hong and other company executives, to the Fair Trade Investigation Department, led by Chief Prosecutor Kim Yong-sik, and has begun reviewing the case records.
According to legal sources on the 28th, Namyang Dairy Products recently filed a complaint against Hong and three former executives, accusing them of embezzling 20.1 billion KRW, which amounts to 2.97% of the company's equity capital. The company also filed additional charges related to breach of trust, though it did not provide detailed explanations about these allegations.
This investigation follows the company's legal and management troubles that began with the "Bulgari Yogurt Incident" in 2021. During the height of the COVID-19 pandemic in April 2021, Namyang Dairy Products sparked controversy by claiming that their Bulgari yogurt was effective in suppressing the virus based on unverified research. As the scandal escalated, Hong announced his resignation as chairman in May 2021, though conflicts arose with Hahn & Company (Hahn & Co.), which became the largest shareholder, over the transfer of shares.
In January of this year, the Supreme Court ruled in favor of Hahn & Co., ordering Hong to sell his shares as per the contract. Subsequently, during the shareholders' meeting in March, key figures from Hahn & Co. were appointed to the board, and a new management structure was implemented, with CEO Kim Seung-eon appointed as the representative executive officer.
Hong's children, Vice Presidents Hong Jin-seok and Hong Beom-seok, reportedly resigned in April. After the leadership change, Namyang Dairy Products reported an operating loss of 7.4 billion KRW in the first quarter of this year, a 52.9% improvement compared to the same period last year, when the loss was 15.7 billion KRW.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
