Prosecutors have demanded a 10-year prison sentence for Hong Won-sik, former chairman of Namyang Dairy Products, who is charged with embezzling and breaching trust involving approximately 20 billion won ($14.8 million). The first trial verdict for Hong is scheduled to be delivered on January 26 next year.
At a final hearing held on December 19 at the Seoul Central District Court's 21st Criminal Division, presided over by Judge Lee Hyun-bok, prosecutors requested the court to sentence Hong to 10 years in prison and impose a fine of approximately 4.3 billion won for violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and breach of trust). Prosecutors also sought prison terms of two to five years for co-defendants, including a former director of Namyang Dairy's central research institute and a former CEO.
Hong was indicted and detained in December last year on charges of receiving billions of won from suppliers in exchange for business deals while managing Namyang Dairy, and causing losses exceeding 10 billion won by inserting companies run by his relatives as intermediaries in transactions. He also faces charges of appointing a supplier's representative as a company auditor and receiving kickbacks from the salary, as well as misusing corporate credit cards for personal purposes.
Additionally, Hong is accused of ordering the destruction of evidence after authorities launched an investigation into false advertising in 2021, when Namyang Dairy promoted its "Bulgaris" yogurt product as having COVID-19 suppression effects.
Hong was detained in December last year but was released in May after posting 100 million won in bail and is currently standing trial without detention. The court imposed bail conditions including residence restrictions and prohibitions on contacting witnesses or co-defendants.
