이 기사는 2021년 07월 08일 08:06 thebell 에 표출된 기사입니다.

Namyang Dairy Products is fined about 829 million won ($728,400) for violation of the food advertisement law after claiming one of its drinks is effective in thwarting Covid-19 infections, bucking market speculation that the company will face a business suspension of its production facilities in Sejong.

The local government has decided to impose a fine of 829 million won on Namyang, industry sources said Tuesday. The amount of the fine has reportedly been calculated based on the maximum fine of 13.81 million won per day multiplied by a two-month business suspension of the company’s factories in Sejong.

In a symposium in April, Namyang claimed that its bottled yogurt drink Bulgaris killed Covid-19 virus without going through animal or human clinical trials.

The Ministry of Food and Drug Safety filed a business suspension and criminal investigation on Namyang for violating the Food Labeling and Advertisement Law. The city of Sejong forewarned Namyang that it will issue a two-month business suspension of the company’s production facilities there.

The administrative measure, if enforced, would have hit Namyang as the two factories are responsible for producing about 40% of the firm's products. The closures of its production facilities may also affect dairy farms, which apparently has kept the local government from issuing a business suspension.

In May, Namyang's ex-chairman Hong Won-sik offered to resign from the top post and vowed to end dynastic control over the family-owned dairy product maker. South Korean private equity firm Hahn & Co is set to buy a controlling stake in Namyang.

The fine of 829 million won is unlikely to have a huge impact on the deep-pocketed dairy product maker. Namyang had immediately available cash and cash equivalents of 93.6 billion won at the end of March, with its debt ratio standing at 16.2%.

The local government is expected to notify the final decision soon. (Reporting by Seon-ho Kim)