Prosecution: "No Basis for Namyang Advisory Position Promise"... Hong Wonshik's Complaint Dismissed

Lack of Credibility and Insufficient Evidence
Prosecution Views Complaint as Attempt to Contest Civil Ruling

The prosecution has decided not to indict Hong Wonshik, former chairman of Namyang Dairy Products, in the complaint he filed against Han Sangwon, CEO of Hahn & Company, and others, alleging they broke their promise to appoint him as a company advisor. The authorities concluded that Hong's claims were unfounded and that the complaint appeared to be an attempt to contest a civil court ruling.

According to the investment banking and legal industries on September 2, the prosecution recently dismissed the case filed by Hong's side, which accused Han and others of violating the Act on the Aggravated Punishment of Specific Economic Crimes.

Previously, in October last year, Hong claimed that "Hahn & Company implied they would grant him an advisory or executive position upon the sale of Namyang Dairy Products shares, but failed to do so, causing him harm," and filed a complaint.

However, the prosecution determined that, based solely on the complainant's (Hong's) claims and the submitted evidence, it was difficult to conclude that such a promise had been made.

The prosecution stated, "The complainant asserts that detailed conditions such as compensation, consulting fees, office, and vehicle provision were specifically agreed upon, but this does not align with the civil court ruling or the defendant's testimony in civil court," adding, "(Hong himself) admitted during the investigation that there was no concrete agreement detailed enough to be reflected in a contract regarding these conditions."

The prosecution also pointed out the lack of credibility in the statements and insufficient supporting evidence. "Despite having served as the de facto CEO of Namyang Dairy Products, one of Korea's leading dairy manufacturers for over 20 years, he continues to make implausible claims, such as 'I relied solely on acquaintances and lawyers when signing the contract,'" the prosecution explained. "(After submitting the complaint, Hong) failed to comply with requests from investigative authorities to appear or submit materials to verify the allegations, leaving the prosecution without evidence to investigate the complaint."

In fact, after submitting the complaint, Hong reportedly refused most of the prosecution's requests to appear. He attended once but left the investigation voluntarily, citing poor health. Afterward, the prosecution summoned him three more times, but he did not comply.

Previously, in 2021, Hong's side also claimed that "promised treatment guarantees were not fulfilled" and refused to execute the stock purchase agreement, a so-called "no-show."

However, in January last year, the Supreme Court ruled, "There was no error in the lower court's judgment that it was insufficient to recognize that the plaintiff (Hahn & Company) had made a firm commitment regarding the treatment of the defendant's (Hong's) family."

A representative from Hahn & Company stated, "Just as the prosecution suspected the complaint was an attempt to contest a civil ruling, we also cannot help but question the intentions of Hong's side, which is currently on trial for hundreds of billions of won in embezzlement and breach of trust, as they continue to repeat false claims," adding, "We will continue to strengthen Namyang Dairy Products' compliance and strive to enhance corporate value through transparent and principled management."

Yonhap News Agency

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