Reporter's notebook Namyang chairman should have left with dignity when he had the chance
Namyang Dairy Chairman Hong Won-sik / Korea Times file
By Lee Kyung-min
It takes an enormous amount of courage to admit to one's wrongdoings.
It takes an even greater amount to do it publicly.
Only those who have confidence in themselves and high self-esteem are able to understand the value of growth and strength through reflecting on their wrong behaviors and dealing head-on with the consequences brought on by their lapses in judgment.
The worst are those pointing fingers at others or playing the victim, in a petty, desperate and futile attempt to save face with what little dignity they are left with.
Equally repulsive are those trying to just drag things out without saying anything that could hurt the chances of them getting their way, hoping they can wait long enough until the issue fades from the minds of the public and from news headlines.
This scenario is precisely what Namyang Dairy Chairman Hong Won-sik seems to want. However, things playing out suggest he will get anything but.
The National Tax Service said Wednesday that the dairy conglomerate's headquarters in Gangnam and two branch offices also in Seoul were raided in an irregular audit over suspicions of tax evasion, embezzlement and misuse of company funds.
Also coming under scrutiny are stock price manipulation suspicions in the months following what later was found to be a false claim raised by the firm's executive that its products helped reduce the likelihood of COVID-19 infection.
The firm's share price more than doubled from 362,500 won ($309) to 813,000 won on July 1. Executives resigned and Hong held a nationally televised press conference on May 4 to announce his own resignation to take responsibility for the fiasco.
The tax investigation came on the heels of a district court's ruling that the stock purchase agreement (SPA) contract signed between Hong and local private equity fund Hahn & Co. was valid and effective.
The Seoul Central District Court said Hong would be subject to a fine of 10 billion won, if he violates a court order not to exercise his voting rights on a company shareholders meeting scheduled for Friday.
Hong sought to sell over a 53.08 percent stake to the private equity fund for 310.7 billion won, as outlined by the SPA. But the deal remains deadlocked, after Hong had a change of heart over what he initially thought was an easy way out. He is stalling apparently because the selling price seems widely undervalued upon further consideration.
The protracted legal battle between the two unfolded over the past few months and will continue, interspersed with a whole different slew of allegations including workplace bullying and labor law violations among others.
Whether the allegations have merit will be determined by law enforcement and labor authorities. But all of that is strengthening the case against the firm for mismanagement under the leadership of Nam, who could and should have been long gone.
There's a saying in Korea: “You should leave when they are still applauding you,” meaning that people should know when to stop being greedy and be grateful for what they had.
Perhaps, deep down, he knows he is losing, and that he has no choice but to delude himself that there still is a fighting chance.
But what he has yet to realize is that time is against him. The more he refuses to let go, the more he will lose ― hence the greater his regret will become.
He should have left with dignity when he had the chance. It is such a shame he is the only one who doesn't see that.