Ex-Namyang Dairy Chairman Arrested Over Alleged Misconduct, False Advertising
Source: DairyNews.today
The former chairman of South Korea's Namyang Dairy Products Co., Hong Won-sik, has been arrested on allegations of breach of trust and false advertising, including claims about a yogurt product’s purported benefits against COVID-19.
The Seoul Central District Court issued the arrest warrant late Thursday, citing the risk of evidence tampering. Prosecutors allege that Hong caused the company to incur losses of approximately 10 billion won ($7.16 million) by involving businesses owned by his family in questionable transactions.
Hong is further accused of accepting large sums from suppliers in exchange for favorable contracts and misusing corporate funds for personal expenditures.
The case also involves allegations of misleading advertising, with prosecutors claiming Hong played a role in promoting Namyang's Bulgaris yogurt as effective in preventing COVID-19, a claim that sparked public and regulatory scrutiny.
The investigation continues as authorities examine the scope of Hong’s alleged misconduct and its impact on Namyang Dairy’s operations.
Hong is further accused of accepting large sums from suppliers in exchange for favorable contracts and misusing corporate funds for personal expenditures.
The case also involves allegations of misleading advertising, with prosecutors claiming Hong played a role in promoting Namyang's Bulgaris yogurt as effective in preventing COVID-19, a claim that sparked public and regulatory scrutiny.
The investigation continues as authorities examine the scope of Hong’s alleged misconduct and its impact on Namyang Dairy’s operations.
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