Namyang Dairy Chairman Hong Won-sik Steps Down from Management Rights... "Will Not Succession Management to Children"

April 4 Public Apology Press Conference

Hong Won-sik, chairman of Namyang Dairy Products, is shedding tears while making a public apology on the 4th at the main auditorium of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul, regarding the controversy caused by the recent announcement that their dairy product, Bulgari, has an effect in suppressing COVID-19. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Seungjin Lee] Hong Won-sik, chairman of Namyang Dairy Products, is stepping down from his position as chairman, taking responsibility for the ‘Bulgaris incident.’ Chairman Hong also announced that he will not pass on management rights to his two sons, emphasizing reform by separating ownership and management.

On the 4th, Chairman Hong held a nationwide apology press conference at the main auditorium on the 3rd floor of Namyang Dairy Products headquarters in Gangnam-gu, Seoul, and bowed deeply at 90 degrees, saying, "I sincerely apologize to all citizens who were disappointed and angered by the controversy surrounding our company’s Bulgaris during this difficult time of COVID-19, as well as to our employees, agency owners, and dairy farmers who have been further hurt and are going through hard times on the ground."

Chairman Hong stated, "As the oldest private dairy processing company in Korea, we have received the love of the people, but I focused only on the company’s growth and failed to break free from outdated ways of thinking," adding, "I would like to express my reflections on the various controversies, big and small, that disappointed the public."

He continued, "When controversies arose, such as the company’s push-out incident in 2013, my nephew Hwang Hana’s incident that caused social uproar, and online comment controversies last year, I should have taken a more proactive stance as chairman to apologize and take necessary measures, but I was greatly lacking."

Chairman Hong tearfully said, "I will take responsibility for all of this and step down from my position as chairman of Namyang Dairy Products," and added, "I will also not pass on management rights to my children." He emphasized, "I sincerely apologize for the delay in making this decision as I was trying to manage the situation." During this process, Chairman Hong wiped away tears and paused several times to regain his composure.

Finally, Chairman Hong added, "Please trust and support our employees once again, who will create a new Namyang through painful innovation."

This nationwide apology by Chairman Hong came 21 days after the ‘Bulgaris incident.’ On the 13th of last month, Namyang Dairy Products held a ‘Symposium on the Development of Antiviral Foods in the COVID-19 Era’ together with the Korea Institute of Medical Science, which co-developed Bulgaris. At this event, Namyang Dairy Products announced that Bulgaris suppresses the COVID-19 virus, which sparked backlash.

Along with a boycott of Namyang Dairy Products, the Ministry of Food and Drug Safety filed charges against Namyang Dairy Products for violating the Food Labeling and Advertising Act. Namyang Dairy Products is facing an unprecedented administrative sanction of a two-month suspension of operations at its Sejong factory, which accounts for 40% of production, and on the 30th of last month, the police conducted a search and seizure at the company’s headquarters.

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