Hong Yuanzhi, the chairman of South Korean dairy company Nanyang Dairy, expressed responsibility for the false propaganda that Bulgaris fermented dairy products have an anti-coronavirus effect, and decided to take the blame and resign.
Yonhap News Agency reported that it was Hong Yuanzhi’s official apology and resignation 21 days after the Bulgaris incident was fermented.
Hong Yuanzhi said at a press conference on Tuesday (4th) that the whole people are experiencing difficulties under the epidemic, and the controversy caused by the company has disappointed and angered the whole people. For this, he sincerely apologizes to the whole society, front-line employees, distributors, and farmers.
Hong Yuanzhi also said that he would not pass the management rights to his son. And called on the people to continue to give their company employees trust and support.
The analysis believes that Hong Yuanzhi’s statement that he did not pass the management rights to his son may be related to his eldest son Hong Zhencheng (sound) responsible for the incident and suspected of embezzling public funds. Hong Zhencheng was relieved of his duties in April for allegedly embezzling company funds to borrow high-end imported cars.
In addition, Li Guangfan, the representative of Nanyang Dairy Industry, also sent an email to the company’s executives and all employees the day before to indicate his resignation.
Nanyang Dairy stated at a symposium hosted by the Korean Academy of Medical Sciences on April 13 that Bulgaris can kill 77.8% of the coronavirus. However, the Department of Disease Management stated that to confirm whether a certain food has the effect of preventing and treating the coronavirus, it is necessary to conduct clinical research on the human body. In view of the fact that this conclusion has not been verified by clinical trials, it is difficult to predict whether related products have this effect.
Afterwards, Nanyang Dairy’s false advertisements were criticized, which triggered a consumer boycott again after the controversy fermented after bullying the distributors in 2013. The Department of Food and Drug Safety accused Nanyang Dairy of violating the Food Labeling Advertising Law. On April 30, the police searched and collected evidence at six locations including the Nanyang Dairy Headquarters and Research Institute. Nanyang Dairy’s Sejong factory has been ordered by the local government to suspend operations for two months. The factory’s output accounts for 40% of the company’s total output.