Seoul, South Korea – Hong Won-sik, the former chairman of Namyang Dairy, has been arrested on charges of embezzlement, bribery, and false advertising. A Seoul Central District Court judge issued an arrest warrant on [date], citing concerns that Hong could destroy evidence.

Hong is accused of embezzling approximately 100 billion won (approximately US$75 million) from Namyang Dairy by funneling company funds to businesses owned by his relatives. Prosecutors allege that Hong also received bribes from suppliers and misused company funds for personal expenses.

Prosecutors further claim that Hong was involved in the "Bulguris incident" in 2021, in which Namyang Dairy falsely advertised that its yogurt product, Bulguris, could prevent COVID-19 infections. When the controversy erupted, Hong allegedly instructed his employees to destroy evidence, including his mobile phone.

Hong resigned as chairman of Namyang Dairy in 2021 following the Bulguris scandal and a consumer boycott. He initially agreed to sell his 53% stake in the company but later reneged on the deal. However, a Supreme Court ruling in January forced him to sell his shares.

The new management of Namyang Dairy filed a criminal complaint against Hong and three former executives in August, alleging embezzlement, bribery, and other criminal activities. Prosecutors are also investigating allegations that Hong's family members misappropriated company funds.

The arrest of Hong Won-sik marks a significant development in the ongoing investigation into alleged corporate misconduct at Namyang Dairy. The case has raised serious concerns about corporate governance and ethical practices in South Korea.