This article was published on May 26, 2025, at 2:44 p.m. on the ChosunBiz RM Report website.
Hong Won-sik, former chairman of NAMYANG DAIRY PRODUCTS, was arrested and indicted on charges of embezzlement and breach of trust amounting to 20 billion won and was released on bail granted by the court on the 26th while undergoing a first trial.
According to the legal community, the 21st Criminal Division of the Seoul Central District Court (Director General Lee Hyun-bok) accepted the bail application made by the former chairman.
The former chairman was indicted and arrested on Dec. 16, 2024. Under the Criminal Procedure Act, the detention period for the first trial is six months. He was released just before the expiration of the detention period.
The former chairman is accused of causing approximately 17.1 billion won in losses to the company by unnecessarily inserting businesses operated by relatives in the intermediary transaction stages while managing NAMYANG DAIRY PRODUCTS from 2000 until April 2023. He also allegedly received about 4.3 billion won as transaction fees from suppliers, misused corporate credit cards for personal expenses, and appointed the representatives of the suppliers as auditors of the company, receiving salaries in return.
The former chairman is also suspected of being involved in an advertisement claiming that NAMYANG DAIRY PRODUCTS' 'Bulgaris' product had an effect on suppressing COVID-19 during the pandemic, and that he destroyed evidence once the investigation began.
Meanwhile, the court approved bail for the former chairman under conditions that he pay a deposit of 100 million won and restrict his residence. The court also ordered him to appear at designated dates and places when summoned. Additionally, he was instructed to obtain court permission when leaving the country and to avoid contact with anyone involved in the case.