Namyang Dairy's Search and Seizure Ends Following Announcement of 'Bulgaris COVID-19 Suppression' (Comprehensive Report 2)

[Image source=Yonhap News]

[Asia Economy Reporters Donghoon Jeong, Seungyoon Song] The police have completed a search and seizure operation on Namyang Dairy Products, which announced that its probiotic beverage product 'Bulgari' has an effect in suppressing COVID-19.

According to the police on the 30th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency conducted search and seizure operations at a total of six locations, including Namyang Dairy Products headquarters in Gangnam-gu, Seoul, and the Sejong Research Institute, starting around 9:30 a.m.

The search and seizure ended around 2 p.m., after 4 hours and 30 minutes. The police reportedly dispatched about 30 investigators to secure internal company documents, PCs, and other related materials. Based on the secured materials, the police plan to investigate the circumstances under which Namyang Dairy Products made the symposium announcement and whether there was any intent of false advertising.

Earlier, on the 13th, Namyang Dairy Products announced at a symposium that its Bulgari fermented milk product has antiviral effects against COVID-19, leading to a complaint filed by the Ministry of Food and Drug Safety for violating the Food Labeling and Advertising Act. Despite not undergoing animal or clinical trials, the announcement claimed COVID-19 suppression effects, causing confusion as Namyang Dairy Products' stock price surged 8.57% the following day, the 14th.

The Ministry of Food and Drug Safety views the research as a cell experiment on the antiviral effects against COVID-19 conducted on one of seven Bulgari products, but the product name was specified as if the effect applied to all Bulgari products, and the company made the symposium announcement for promotional purposes rather than purely academic reasons.

A police official stated, "The search and seizure is not related to suspicions of stock price manipulation through false advertising," adding, "It concerns a violation of the Food Labeling and Advertising Act." Article 8 of the Food Labeling and Advertising Act prohibits "labels or advertisements that may be perceived as having efficacy in preventing or treating diseases." In response to the controversy over Bulgari's COVID-19 suppression effects, Namyang Dairy Products apologized, saying, "We caused misunderstanding among consumers."

This content was produced with the assistance of AI translation services.