Prosecutors have launched a reinvestigation into allegations that former Namyang Dairy Products Chairman Hong Won-sik's family privately misused company funds. A reinvestigation means further probing areas where the initial investigation was insufficient.
According to legal sources on the 11th, the Fair Trade Investigation Division of the Seoul Central District Prosecutors' Office (headed by Na Hee-seok) is reviewing allegations including breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes against the former chairman, following a recent reinvestigation order from the Seoul High Prosecutors' Office.
The reinvestigation is reportedly set to focus on indications of breach of trust by the former chairman's family before 2017, which had not been included in the original indictment scope. Prosecutors suspect that the former chairman's wife and children had "VVIP" credit cards issued with company funds and used them for personal purposes. The cards are said to be available only upon paying annual fees in the 1 million to 3 million won range.
On the 29th, the former chairman was sentenced to three years in prison at the Seoul Central District Court on charges of privately using company assets and receiving tens of billions of won in rebates from business partners.
On the same day, the former chairman's wife, former adviser Lee Un-kyung, eldest son Hong Jin-seok, a former executive director, and second son Hong Beom-seok, a former deputy executive director, who were indicted for privately using about 3.7 billion won in company funds, were found guilty at the first trial. Lee received two years and six months in prison, suspended for four years; Hong, the former executive director, received three years in prison, suspended for five years; and Hong, the former deputy executive director, received two years in prison, suspended for four years.