Home > National > Social Affairs

Court grants bail to former Namyang Dairy chairman

Published: 26 May. 2025, 18:28

Hong Won-sik, former chairman of Namyang Dairy Products, appears at the Seoul Central District Court in Seocho District, southern Seoul, on Nov. 28, 2024 for a pretrial detention hearing. [NEWS1]

A court granted bail to Hong Won-sik, 75, former chairman of Namyang Dairy Products, allowing him to stand trial without detention on charges of embezzlement and breach of trust involving more than 20 billion won ($14.7 million).

The Seoul Central District Court approved Hong’s bail request, according to legal sources on Monday. The court set bail at 100 million won and imposed restrictions on his residence and movements.

Hong must appear at court when summoned and cannot leave the country without prior approval under the bail conditions. The court also barred him from contacting witnesses, approaching related persons at home or work or interfering with testimony.

He must submit a written oath agreeing to these conditions.

Prosecutors arrested Hong on Nov. 28 last year during an investigation and indicted him on Dec. 16 while he remained in custody.

Investigators allege that Hong misused corporate property, including a villa and vehicles, for personal use and caused financial losses to Namyang Dairy by funneling transactions through intermediary companies run by relatives.

They estimate the damage at roughly 20.1 billion won

From around 2000 to April 2023, Hong allegedly inserted family-run firms into Namyang Dairy’s distribution network, forcing the company to pay unnecessary fees — referred to as “pass-through tolls” — and incurring 17.1 billion won in losses.

He also received 4.37 billion won in rebates from four of Namyang’s suppliers, prosecutors said.

Prosecutors additionally charged Hong with encouraging destruction of evidence after authorities launched an investigation into Namyang’s claim during the Covid-19 pandemic that its drinking yogurt, Bulgaris, could help suppress the virus.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HAN YOUNG-HYE [[email protected]]