Prosecutors conducted a raid on the former chairperson's residence and Namyang Dairy Products Co.'s headquarters in connection with an investigation into alleged embezzlement. The Seoul Central District Prosecutors Office targeted over 10 locations, including the home of former Chairman Hong Won-sik. The company had previously lodged a complaint against Hong and three other ex-officials, claiming they misappropriated around 20.1 billion won ($14.9 million) in company funds and breached trust by using the funds for personal expenses such as overseas trips, art purchases, and personal use of company resources like vehicles and cards. The investigation was prompted by a legal dispute earlier in the year, which resulted in Hong losing control of the company. In a separate development, Hong, the eldest son of the company's late founder, had initially agreed to sell a majority stake in the company to Hahn & Co. However, the deal was later voided by the owner family, leading to a legal battle that culminated in the Supreme Court affirming a lower court's ruling that mandated Hong to sell his controlling interest. This series of events has put Namyang Dairy Products Co. under scrutiny, as prosecutors delve into allegations of financial misconduct and misuse of company resources.