Chairman Hong Won-sik's First Appearance at the National Audit... Will He Reveal the Full Story of the 'Bulgaris Incident'?

Hong Won-sik, Chairman of Namyang Dairy Products, attended the National Assembly's audit on the Fair Trade Commission held by the National Assembly's Judiciary Committee on the 5th and responded to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Seungjin Lee] Attention is focused on whether Hong Won-sik, chairman of Namyang Dairy Products, will directly reveal the full story behind the so-called 'Bulgaris Incident' that led to the decision to sell the company.

According to the National Assembly on the 6th, Chairman Hong is scheduled to appear as a witness at the Health and Welfare Committee (hereinafter Welfare Committee) audit on the 8th. The Welfare Committee audit is expected to focus on the controversy over exaggerated advertising claims that Namyang Dairy Products' Bulgaris has COVID-19 suppression effects.

It is still uncertain whether Chairman Hong will attend the Welfare Committee audit, but the likelihood of his attendance is high. At the Political Affairs Committee (hereinafter Political Committee) audit held the day before, Chairman Hong responded, "No matter how many times the assembly member calls, I will come immediately," showing a humble attitude.

Until now, despite numerous controversies such as 'agency power abuse,' Chairman Hong had never appeared at the audit sessions. However, due to the decision to sell the company following the 'Bulgaris Incident' and the subsequent cancellation of the sale, which caused consumer trust to plummet, it seems he is stepping forward personally to apologize and explain.

In particular, at the Welfare Committee audit, Chairman Hong is expected to directly explain and apologize for the full story of the 'Bulgaris Incident.' At the Political Committee audit the day before, Chairman Hong euphemistically described the 'Bulgaris Incident' as an "unexpected situation."

Meanwhile, at the Political Committee audit, Chairman Hong reiterated his intention to sell the company and confirmed that the sale will be to a third party, not to Hann & Company (hereinafter Hann & Co), with whom he is currently engaged in legal disputes.

In response to People Power Party lawmaker Yoon Joo-kyung's question about compensation plans for damages suffered by agencies due to the legal battle with Hann & Co, Chairman Hong said, "I believe the most direct way to increase corporate value and establish the status of agencies is through the sale."

When Democratic Party lawmaker Hong Sung-guk asked, "Will you filter out and dismiss employees who cooperated with Hann & Company?" Chairman Hong repeatedly emphasized, "Absolutely not."

Throughout the lawmakers' questions, Chairman Hong bowed deeply and stated, "The most suitable path that satisfies both the company and its members is a third-party appropriate sale. My final duty is to find a third party, sell to them, and seek common interests."

Earlier, in April, Namyang Dairy Products announced research claiming that its product Bulgaris had preventive effects against COVID-19, but was reported to the Ministry of Food and Drug Safety and faced a boycott. Following a public apology, Chairman Hong decided to sell his shares in Namyang Dairy Products and step down from management. However, last month, he withdrew the share sale contract with Hann & Co, drawing criticism for causing damage to agencies and shareholders.

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