Ex-chairman of Namyang Dairy Questioned over Alleged Embezzlement

Hong Won-sik, former chairman of Namyang Dairy Products Co. (Image courtesy of Yonhap) SEOUL, Nov. 18 (Korea Bizwire) — Prosecutors questioned a former chairman of a major South Korean dairy company Monday as part of an investigation into allegations he embezzled company funds for personal use.

Hong Won-sik, former chairman of Namyang Dairy Products Co., underwent the questioning at the Seoul Central District Prosecutors Office, officials said. Hong is suspected of embezzling about 20.



1 billion won (US$14.4 million) worth of company funds. In August, the company filed a complaint against Hong and three other former company officials on possible charges of embezzlement and breach of trust.

Prosecutors are reportedly widening allegations that Hong had spent company funds for overseas trips and art purchases, as well as using company vehicles and cards for personal use. The prosecution raided Hong’s residence and the company headquarters last month. The investigation came after a legal battle earlier this year in which Hong lost control of the company.

Hong, the eldest son of the company’s late founder, had earlier agreed to sell a 53 percent stake in the company to Hahn & Co., but the deal was later canceled by the owner family, resulting in a lawsuit. In January, the Supreme Court upheld a lower court’s decision that ordered Hong to sell his controlling stake.

(Yonhap).