The Tears of Namyang Dairy Group's Head, and the Final Farewell: "I'm Sorry"

A Difficult Decision, Unable to Avoid Harsh Scrutiny Inside and Outside the Company
Quietly Supporting Namyang Dairy Products and Their Families' Health and Well-being

Hong Won-sik, chairman of Namyang Dairy Products, recently issued a public apology regarding the controversy caused by the announcement that the company's dairy product, Bulgari, has an effect in suppressing COVID-19. On the 4th, he announced his resignation as chairman after apologizing to the public at the main auditorium of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lim Hye-seon] Hong Won-sik, former chairman and largest shareholder of Namyang Dairy Products, revealed the reason for selling his shares in an email to employees, stating, "I have come to the limit where my efforts are ridiculously insufficient for the normalization of management."

On the 27th, the Namyang Dairy Products owner family, including former largest shareholder Hong Won-sik, sold all their shares (378,938 shares) to the private equity fund Hahn & Company. The total amount was approximately 310.7 billion KRW.

According to the distribution industry on the 28th, former chairman Hong expressed his thoughts in an email to employees on the 27th. He said, "Starting today, I want to let go of everything related to the management of Namyang Dairy Products and bid my final farewell to the Namyang family," adding, "I made this difficult decision because I understand well the hardships faced by the Namyang family due to the recent series of incidents."

He stated, "I stepped down from the chairman position out of responsibility to resolve the situation and decided not to pass on the management rights to my children," and added, "Despite announcing management reform plans, I could not avoid the harsh criticism both inside and outside the company." He continued, "The corporate value kept declining, and the reality that employees could not proudly say they work for Namyang Dairy Products weighed heavily and painfully on me as the largest shareholder," and said, "After much deliberation to do whatever it takes, I decided to give up my last pride, the status of largest shareholder."

Former chairman Hong said, "The past 45 years with the Namyang family flash before my eyes like a slideshow, bringing tears to my eyes," and added, "From now on, I will quietly support and pray for the health and success of Namyang Dairy Products and its family." Finally, he left a message saying, "Thank you. And I am sorry."

Hong Won-sik, eldest son of the late honorary chairman and founder Hong Du-young, joined the company in 1977, became CEO in 1990, and was appointed chairman in 2003. Namyang Dairy Products faced social outrage after the 2013 agency bullying scandal that led to a boycott, and more recently, the controversy over the COVID-19 effects of Bulgari (Bulgaris) stirred public anger. Earlier this month, Hong issued a public apology and announced his resignation from the chairman position.

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