Former Chairman Hong Won-sik and Controversial Executives Leave Company... "New Management Deeply Reflects"
On the 12th, Namyang Dairy Products announced that it accepts the fine imposed for false advertising claiming that its product Bulgari has an effect in suppressing COVID-19.
Namyang Dairy Products issued a statement on the same day, saying, "We humbly accept the first trial court's ruling and intend to accept the court's decision without appeal."
During the COVID-19 pandemic in 2021, Namyang Dairy Products announced that Bulgari had virus suppression effects. In response, the Korea Disease Control and Prevention Agency immediately refuted the claim, and the Ministry of Food and Drug Safety filed charges against the company and its executives at the time for violating the Food Labeling and Advertising Act.
On the 7th, the Seoul Central District Court ruled that the guilt of false advertising unverified effects was serious and sentenced Namyang Dairy Products corporation to a fine of 50 million KRW. Additionally,
former Namyang Dairy Products CEO Lee Gwang-beom and former Head of the Antiviral Immunity Research Institute Park Jong-su were each fined 20 million KRW, and two other former executives who were jointly indicted were each fined 10 million KRW.
Namyang Dairy Products stated, "We sincerely apologize to consumers who may have felt disappointment and distrust due to this incident," and emphasized, "The new management is doing its best to prevent recurrence." They added, "The new Namyang Dairy Products will prioritize honesty and trust as its core values, take this incident as a painful lesson, and thoroughly practice compliance and ethical management," and promised, "We will do our utmost to gain consumer trust through efforts for change and reform."
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