Former NAMYANG DAIRY PRODUCTS chairman Hong Won-sik acknowledged some charges of embezzlement and kickbacks during the first formal trial regarding allegations of embezzlement and breach of trust exceeding 20 billion won.
On the 18th, the 21st Criminal Division of the Seoul Central District Court, presided over by Director General Lee Hyun-bok, conducted the first hearing for Hong and four others who were arrested and indicted for violating the Act on the Punishment of Specific Economic Crimes (breach of trust and embezzlement), starting from 2 p.m.
On this day, Hong entered the courtroom in a green prison uniform with his hands behind his back. He covered his face below the eyes with a white mask and was not wearing the glasses he typically uses in public.
Previously, prosecutors indicated that Hong caused damages of 17.1 billion won to NAMYANG DAIRY PRODUCTS through collusion with contracting companies and cash kickbacks from 2000 until April 2023. During this process, he allegedly received about 4.3 billion won in kickbacks from four trading companies and arranged for his cousin to secure a job at a supplier, receiving a salary of 600 million won.
Hong is also under suspicion of having intervened in advertisements claiming that NAMYANG DAIRY PRODUCTS' 'Bulgaris' products had an inhibitory effect on COVID-19 during the pandemic, and allegedly destroying evidence when the investigation began.
At the trial, Hong's side stated, 'We acknowledge part of the allegations, excluding those cases where the statute of limitations has expired,' regarding the embezzlement and kickback charges. On the other hand, regarding the alleged violation of advertising laws related to Bulgaris, they denied the allegations, saying, 'We were merely discussing research results and had no intention of promoting the product.'
Meanwhile, during the trial, claims arose that Hong eliminated the in-house legal audit team during the time the crimes were committed. A NAMYANG DAIRY PRODUCTS employee, who appeared as a witness that day, stated, 'I understand that Hong Won-sik abolished the in-house legal audit department around July 2019.' This employee participated in an audit conducted after private equity firm Hahn & Company acquired NAMYANG DAIRY PRODUCTS in August last year, which revealed the charges of breach of trust and embezzlement against Hong.