Prosecutors Summarily Indict Hong Won-sik, Chairman of Namyang Dairy Products, and Employees for Defamation Against Competitors with Fines

Violation of the Information and Communications Network Act and Obstruction of Business Charges
Defamation Charges under the Information and Communications Network Act Dismissed Due to Lack of Prosecution Rights

On May 4th, Hong Won-sik, Chairman of Namyang Dairy Products, held a public apology press conference regarding the 'Bulgaris Incident.' Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] Hong Won-sik, chairman of Namyang Dairy Products, was summarily indicted with a fine on charges of repeatedly posting false defamatory statements about competitor Maeil Dairies on the internet.

The Criminal Division 2 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Park Hyun-chul) applied charges of violation of the Information and Communications Network Act (Information and Communications Network Interference, etc.) and obstruction of business against Chairman Hong on the 14th, summarily indicting him with a fine of 30 million KRW. Under the joint penalty provision, the Namyang Dairy Products corporation was also summarily indicted.

The prosecution also summarily indicted two Namyang Dairy Products employees involved in the crime with fines of 10 million KRW each, and one representative of the public relations agency with a fine of 7 million KRW.

Chairman Hong and others are accused of mobilizing a public relations agency from March to July 2019 to repeatedly post false defamatory statements on various mom cafes using others' IDs, such as "There is a nuclear power plant near the raw milk supply farm of Maeil Dairies, posing a risk of radioactive leakage."

In May of last year, while the police investigation was ongoing, Namyang Dairy Products issued a statement claiming that "the actions were arbitrarily taken by staff and the public relations agency amid an overheated promotional competition," but the prosecution judged that there was recognition of instructions or conspiracy involving Chairman Hong.

However, the prosecution stated that after the case was transferred to the prosecution, the victim company Maeil Dairies withdrew the complaint, and considering Chairman Hong's remorse, they opted for summary indictment with a fine instead of a formal trial.

Regarding the defamation charges under the Information and Communications Network Act, since it is a quasi-offense that cannot be prosecuted against the explicit wishes of the victim, the prosecution was dismissed due to lack of prosecution rights.

Currently, the prosecution is investigating a case transferred from the police concerning Namyang Dairy Products' announcement at a symposium held in April that its yogurt product "Bulgari" has a COVID-19 suppression effect, for which it was reported by the food authorities.

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