Prosecutors raid home of Namyang Dairy's ex-chairperson over alleged embezzlement

Prosecutors on Monday raided the residence of Namyang Dairy Products Co.'s former chairperson and the company's headquarters as part of an ongoing investigation into embezzlement allegations.

Investigators from the Seoul Central District Prosecutors Office raided more than 10 locations, including former Chairman Hong Won-sik's home.

In August, the company filed a complaint against Hong and three other former company officials, accusing them of allegedly embezzling company funds of about 20.1 billion won ($14.9 million) and breach of trust.

Prosecutors are reportedly widening allegations that Hong had spent company funds for overseas trips and art purchases, as well as using company vehicles and cards for personal use.

The investigation came after a legal battle earlier this year in which Hong lost control of the company.

Hong, the eldest son of the company's late founder, had earlier agreed to sell a 53 percent stake in the company to Hahn & Co., but the deal was later canceled by the owner family, resulting in a lawsuit.

In January, the Supreme Court upheld a lower court's decision that ordered Hong to sell his controlling stake. (Yonhap)