"Namyang Dairy? Now Even Formula Milk Is Unwanted"… Boycott Rekindled Amid Sale Delays

Former Chairman Hong Won-sik Absent from General Meeting
Months-Long Uncertainty Over Sale
Han & Company Legal Response to Acquisition

Infant Formula Less Affected by Boycott
Reignited in Parenting Communities
Some Moving Reserved Postpartum Care Centers

[Asia Economy Reporter Seungjin Lee] As former Namyang Dairy Products Chairman Hong Won-sik's absence from the extraordinary shareholders' meeting for the sale of management rights has made the company's sale uncertain, a boycott of all Namyang Dairy Products products is reigniting. The damage is falling on employees and dealership owners.

"Let's move to postpartum care centers that don't use Namyang formula"

According to related industries on the 17th, cases of boycotting Namyang Dairy Products' formula are continuing mainly on online communities. Formula milk was a product that had little impact even during past boycotts caused by dealership power abuse controversies. Most postpartum care centers choose the formula brand that newborns are fed first.

The current boycott situation is different. On a parenting community, there was even a post about changing postpartum care centers to avoid Namyang Dairy Products' products. It said that after learning that the previously reserved care center used Namyang formula, they belatedly switched centers.

Kim Soo-min (33, pseudonym), who is expecting to give birth in September, said, "Choosing which formula to use is one of the important choices when selecting a postpartum care center, and from what I see among surrounding mothers, most tend to avoid Namyang Dairy Products' products," adding, "I think there is no need to use products from companies that do not inspire consumer trust."

Damage falls on employees and dealership owners

Employees and dealership owners who had hoped for the normalization of Namyang Dairy Products' management with the resignation of Chairman Hong's family say that the chaotic atmosphere has only caused more damage for months. Various reform plans proposed by Han & Company, the prospective new owner, have not even taken the first step as the sale process has not been completed. The Namyang Dairy Products labor union has started one-person protests in front of the company building, urging former Chairman Hong to fulfill his resignation promise.

Dealership owners are also expressing their suffering. Despite a sharp drop in sales due to the spread of the boycott, Namyang Dairy Products has not presented any alternatives due to the management vacuum. Kang Young-seok (45, pseudonym), who operates a Namyang Dairy Products dealership in the Seoul area, said, "I have been running the dealership for 10 years, but sales have never dropped like this before," adding, "When I went to deliver to a supermarket, customers asked, 'Why on earth are you selling this?' The situation is so serious, but the headquarters has no countermeasures at all."

Dealership owners are watching the situation to decide whether to take collective action. The dealership owners' council has stated that if the current situation persists after the extraordinary shareholders' meeting, they may take collective action.

Han & Company announces legal action

Han & Company, which was about to acquire management rights, has announced legal action against former Chairman Hong's family, who postponed the scheduled extraordinary shareholders' meeting by six weeks. Han & Company is expected to file a lawsuit for contract enforcement as well as a damages claim lawsuit, holding them accountable for failure to fulfill contractual obligations on paper. Some speculate that a prolonged legal battle is inevitable, with only employees and dealerships suffering damage.

Han & Company explained, "The scheduled closing date is the 30th, and no matter how late, it cannot go beyond August 31, so it is difficult to understand the reason for deliberately postponing the extraordinary shareholders' meeting beyond that," adding, "The buyer does not need preparation time for closing." In response, a Namyang Dairy Products official said, "This is a matter between former Chairman Hong and Han & Company, and the company has no separate position."

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