Namyang Dairy executives charged

Posted 30 July, 2013
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Six officials from the South Korean dairy Namyang, including the company president Kim Woong, have been charged with employing a series of unfair business practices such as forcing small retailers and distributors to accept more supplies than they needed, according to the Seoul Central District prosecutors’ office.

The six have been indicted for allegedly violating the Fair Trade Act. Twenty-two other former and incumbent dairy officials have also been fined for employing unfair sales tactics that include intimidation, prosecutors say.

However, chairman Hong Won-Sik has not been involved, according to the prosecution. The infractions are said to have occurred between 2008 and December 2012, and included methods such as manipulating order bills and canceling contracts with small distributors when they complained about the unfair practices.

An €8.2m fine was also levied.