'Namyang Dairy Products Chairman Suspected of Stock Manipulation, Cleared of Charges'
by Choi Taewon
Published 14 Apr.2023 08:11(KST)
The police have concluded that Hong Won-sik, chairman of Namyang Dairy Products, who caused controversy by announcing that his company's beverage product is effective in preventing COVID-19, is not guilty of any charges.
According to the police on the 14th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency re-investigated the chairman on the 11th, who was suspected of violating the Food Labeling and Advertising Act and the Capital Markets Act, and concluded that there was no evidence of wrongdoing, notifying the Seoul Central District Prosecutors' Office of the results.
Previously, in April 2021, Namyang Dairy Products announced at a symposium that its fermented yogurt product, Bulgari, had antiviral effects against COVID-19. The company's stock price surged the day after the announcement. The Ministry of Food and Drug Safety investigated and found that Namyang Dairy Products had exaggerated the experimental results, and based on Article 8 of the Food Labeling and Advertising Act, filed a complaint with the police in August of the same year.
Subsequently, a civic group filed a complaint in March last year against Chairman Hong, who was excluded from the initial complaint, for violating the Food Labeling and Advertising Act and stock price manipulation. However, the police decided not to prosecute Chairman Hong, stating there was no evidence of wrongdoing. After reviewing the materials, the prosecution requested a reinvestigation in July of the same year.
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