Hong Won-sik, Former Chairman of Namyang Dairy Products, His Wife and Two Sons Indicted on Charges of Breach of Trust

Namyang Dairy Products announced on the 15th that three individuals, including former advisor Lee Un-kyung, wife of former chairman Hong Won-sik, and his two sons, former executive directors Hong Jin-seok and Beom-seok, have been additionally indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust).

Hong Won-sik, former chairman of Namyang Dairy Products. Photo by Yonhap News

The amount involved in their charges is approximately 3.7 billion KRW. Accordingly, the total amount related to embezzlement and breach of trust involving former chairman Hong and eight other related parties has increased to 25.6 billion KRW.

A Namyang Dairy Products official stated, "The company views this matter very seriously and plans to cooperate sincerely with legal procedures," adding, "We will do our best to strengthen internal management transparency, establish measures to prevent recurrence, and transform into a responsible company under a new management system."

Private equity firm Hahn & Company (Hahn & Co) engaged in a dispute with former chairman Hong, the owner, and in January last year, following a Supreme Court ruling, took over the management rights of Namyang Dairy Products. Although former chairman Hong has left Namyang Dairy Products, legal disputes continue.

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