Namyang chairman to stand trial over alleged tax evasion

By Korea Herald
  • Published : Jan 15, 2014 - 19:58
  • Updated : Jan 15, 2014 - 19:58
The head of major dairy product maker Namyang Dairy Products Co. was indicted on charges of evading taxes worth 7.37 billion won ($6.9 million) through various illegal methods, prosecutors said Wednesday.

Chairman Hong Won-sik is under suspicion of stashing secret funds via deals involving expensive artworks and dodging taxes in the process, they said.

“Among the items are high-value pieces such as one of the series of ‘Jackie paintings’ by legendary contemporary artist Andy Warhol,” said an investigator of the Seoul Central District Prosecutors’ Office.

Prosecutors alleged that Hong purchased the pieces through one of the country’s well-known art galleries, Gallery Seomi.

The 64-year-old chairman also allegedly traded shares under borrowed names after inheriting them from his father and founder of the company, Hong Du-yeong, in 2007 in an aim to evade transfer and income taxes, prosecutors said. (Yonhap News)