Namyang Dairy Ex-Chairman’s Residence Raided Amid Embezzlement Probe
Source: DairyNews.today
On Monday, prosecutors conducted a raid on the residence of Hong Won-sik, the former chairperson of Namyang Dairy Products Co., as well as the company’s headquarters, as part of a widening investigation into allegations of embezzlement and breach of trust. The Seoul Central District Prosecutors Office led the operation, which included more than 10 locations tied to the ongoing case.
The investigation follows a complaint filed in August by Namyang Dairy, accusing Hong and three former executives of embezzling approximately 20.1 billion won ($14.9 million) from the company. Prosecutors allege that Hong misused company funds to finance personal expenses, including overseas travel, art purchases, and the use of company assets such as vehicles and corporate credit cards.
This legal development comes on the heels of a contentious corporate battle earlier this year, in which Hong lost control of Namyang Dairy. As the eldest son of the company’s late founder, Hong had initially agreed to sell a 53 percent stake in Namyang Dairy to the private equity firm Hahn & Co. However, the deal fell through after the owner family retracted the agreement, sparking a lawsuit. In January, South Korea's Supreme Court upheld a lower court’s decision requiring Hong to divest his controlling stake.
The investigation into Hong’s financial dealings represents another chapter in Namyang Dairy’s ongoing corporate saga, as authorities delve deeper into allegations that underscore tensions within one of South Korea’s prominent family-owned businesses.
This legal development comes on the heels of a contentious corporate battle earlier this year, in which Hong lost control of Namyang Dairy. As the eldest son of the company’s late founder, Hong had initially agreed to sell a 53 percent stake in Namyang Dairy to the private equity firm Hahn & Co. However, the deal fell through after the owner family retracted the agreement, sparking a lawsuit. In January, South Korea's Supreme Court upheld a lower court’s decision requiring Hong to divest his controlling stake.
The investigation into Hong’s financial dealings represents another chapter in Namyang Dairy’s ongoing corporate saga, as authorities delve deeper into allegations that underscore tensions within one of South Korea’s prominent family-owned businesses.
