Namyang Dairy Finally Sells 'Bulgaris Controversy' Brand... Private Equity Firm Hahn & Company to Acquire

by Lee Seungjin

Published 27 May.2021 17:53(KST)

Hong Won-sik, chairman of Namyang Dairy Products, is bowing his head in greeting at a public apology press conference related to the 'Bulgaris incident' held on the 4th at Namyang Dairy Products headquarters in Gangnam-gu, Seoul. Last month, Namyang Dairy Products announced at a symposium on 'Development of antiviral foods in the COVID-19 era' that the Bulgaris product was confirmed to reduce COVID-19 by 77.8%. However, the research results were revealed to have exaggerated the findings from animal 'cell-level' experiments, causing controversy. In response, Hong Won-sik, chairman of Namyang Dairy Products, expressed his intention to resign at the public apology press conference on the same day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Seungjin Lee] Namyang Dairy Products, embroiled in various controversies including the 'Bulgaris controversy,' is finally going up for sale. Hanwha & Company, a domestic private equity fund (PEF), will acquire the entire owner family stake, including 51.68% held by former Namyang Dairy Products Chairman Hong Won-sik.

According to the investment banking (IB) industry on the 27th, Hanwha & Company signed a stock purchase agreement (SPA) to acquire management rights, including 53% of the owner family shares held by former Chairman Hong Won-sik and others.

Namyang Dairy Products recently faced its greatest crisis since its founding in 1964 due to the backlash over claims that its fermented milk product Bulgaris suppresses COVID-19. Subsequently, controversies surrounding plagiarism disputes and allegations of owner family corruption erupted, spreading widely. The damage to sales and brand image appears to have been greater than the past 'agency power abuse incident,' leading to what seems to be a business withdrawal.