[Exclusive] Prosecution looks into former Namyang chief’s involvement in ‘Bulgaris incident’

[Anchor]

A search and seizure by the prosecution was conducted yesterday (10.7) against Hong Won-sik, the former chairman of Namyang Dairy Products, who has been accused of embezzlement amounting to 20 billion won.

According to KBS's investigation, it has been confirmed that the prosecution has specified in the warrant that Hong was involved in the exaggerated advertising claims that Namyang Dairy's Bulgaris yogurts have a COVID-19 suppression effect, in addition to the embezzlement allegations.

This is a special report by Kim Young-hoon.

[Report]

In April 2021, Namyang Dairy Products announced that its product 'Bulgaris' would be effective in preventing and treating COVID-19.

Following the controversy over false and exaggerated claims, the so-called 'Bulgaris incident' occurred, leading Hong Won-sik to step down from his position as chairman.

[Hong Won-sik/Chairman of Namyang Dairy Products/May 2021: "I will resign from the position of chairman of Namyang Dairy Products. I will also not pass on management rights to my children."]

After a private equity fund took over management rights, Namyang Dairy Products filed a lawsuit in August against former chairman Hong and three former executives for embezzlement and breach of trust amounting to 20 billion won.

The prosecution has launched a full-scale investigation by conducting searches at Hong's residence and the Namyang Dairy headquarters, and it has been confirmed that the warrant includes charges of violation of the Food Labeling and Advertising Act and instigation of evidence destruction, in addition to embezzlement and breach of trust.

Previously, the police had only referred four current and former executives, including former CEO Lee Kwang-bum, to the prosecution in connection with the 'Bulgaris incident'.

However, during the prosecution's additional summons and investigation of these individuals, it became evident that the ultimate responsibility for the 'Bulgaris incident' lay with former chairman Hong.

The prosecution plans to confirm whether Hong received or approved false exaggerated advertisements and whether he instructed the destruction of evidence through the analysis of seized materials.

They will also look into allegations that company expenses were used for overseas travel and art purchases, as well as suspicions that part of the export proceeds to China were embezzled.

The prosecution intends to summon Hong as a suspect for questioning as soon as the analysis of the seized materials is completed.

This is KBS News, Kim Young-hoon.