Chaebols' Third Generation Busy Explaining Years of 'Drug Use' Allegations

Namyang Dairy Products "Person who has never worked at the company nor holds shares"
Hyosung "Separated from the group over 40 years ago... unrelated individual"

Marijuana cultivation tent and equipment seized from the residence by the prosecution.
[Photo by Seoul Central District Prosecutors' Office]

[Asia Economy Reporter Heo Kyung-jun] As it was revealed through a prosecution investigation that heirs of chaebols were involved with marijuana and liquid marijuana, the companies concerned are rushing to distance themselves from the indicted owner families.

The Seoul Central District Prosecutors' Office's Violent Crimes Division (Chief Prosecutor Shin Jun-ho) announced on the 2nd that it has indicted a total of nine people for violating the Narcotics Control Act (marijuana), including Hong, the son of the late honorary chairman Hong Doo-young, founder of Namyang Dairy Products, who was arrested and indicted on charges of marijuana smoking and distribution, and Cho (39), a third-generation member of the Hyosung family, who was indicted without detention on charges of marijuana smoking.

In response, Namyang Dairy Products issued a statement saying, "The person mentioned in the reports is the son of Hong, the late honorary chairman and founder who passed away 12 years ago. He has never worked at Namyang Dairy Products and holds no shares in the company, so he is unrelated to us," thereby distancing themselves from Hong.

Hyosung Group also quickly cut ties with Cho, emphasizing that he is unrelated to the group. Hyosung explained, "Among the nine indicted individuals, the family mentioned in connection with us separated from Hyosung Group over 40 years ago and is completely unrelated to the current Hyosung business-wise."

The companies related to the chaebol heirs who have been indicted on charges such as marijuana use are deeply concerned about potential damage to their group image.

Given the strong public concern over the spread of narcotics, and the fact that some chaebol heirs committed crimes secretly despite crackdowns by investigative agencies, public criticism is expected to continue for the time being.

The prosecution plans to conduct a thorough investigation into marijuana distribution offenders, as it believes that the chaebol heirs started using marijuana during their overseas studies and continued smoking for several years after returning to Korea without quitting.