Namyang Dairy Pledges Transparency and Ethical Reforms Under New Ownership

On Friday, the company's newly appointed board of directors announced a series of robust reform measures designed to revitalize its corporate governance and reinforce its commitment to ethical business practices. Chief Compliance Director Lee Sang-wook, who was appointed to lead the company's Ethics Division earlier this year, outlined the new guidelines aimed at preventing illegal activities and ensuring that the company adheres to the highest standards of compliance. "We promise a zero-tolerance policy against those involved in misconduct," Lee stated, emphasizing the company's resolve to uphold law-abiding business practices across all operations. Namyang's journey to new management was marked by legal battles and controversy. In January 2021, Seoul-based private equity firm Hahn & Co. reached an agreement to acquire a majority stake in the dairy giant. However, the deal faced unexpected challenges when former chairman Hong Won-sik attempted to withdraw from the agreement, citing unfavorable terms. A three-year legal dispute ensued, culminating in a Supreme Court ruling in January that upheld the original deal, paving the way for Hahn & Co. to take control. Since assuming ownership, Hahn & Co. has been proactive in overhauling Namyang's image and operations. In May, the company established an Ethics Division and appointed Lee Sang-wook, a former prosecutor, as chief compliance director. The company is also in the process of forming a compliance committee with external experts to enhance oversight and governance. Friday's announcement introduced further comprehensive measures aimed at streamlining Namyang's governance structure. These include the implementation of a stringent internal monitoring system, regular audits, and hearings to prevent accounting malpractice. The company is also developing a detailed compliance and ethics program, which will include financial management and security internal control rule books. These measures are intended to provide around-the-clock oversight and quickly detect any irregularities. In addition to these reforms, Namyang is establishing an in-house hotline for reporting corruption, reinforcing its commitment to transparency and ethical business practices. Community Outreach and Social Responsibility: Namyang's reform efforts extend beyond internal governance. The company has ramped up its community outreach initiatives, recently earning a nomination from the Korea Fair Trade Commission for its improved cooperation with local retailers. Furthermore, Namyang has been actively involved in social responsibility efforts, including supplying specialized milk powder for children with disabilities. These initiatives reflect the company's commitment to making a positive impact on society while pursuing sustainable growth that benefits all stakeholders. "We're committed to enhancing the ethical awareness of all our staff," Lee added. "Our goal is to pursue sustainable growth that benefits all stakeholders." Namyang Dairy's comprehensive reforms and renewed focus on ethical business practices signal a significant shift in its corporate culture, as it strives to regain its place as a trusted and responsible leader in the dairy industry.