Prosecutors are widening their investigation into the family of former Namyang Dairy Products chairman Hong Won-sik, who is on trial over allegations of privately using 3.7 billion won in company funds, industry sources said.

According to the industry on Monday, the Seoul Central District Prosecutors Office's Fair Trade Investigation Division, led by Chief Prosecutor Hee-seok Na, is investigating potential additional misuse of funds tied to allegations of breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes involving Hong's wife, former adviser Woon-kyung Lee (이운경), and their two sons.

Prosecutors recently detected signs that Lee and others may have used company funds for private purposes beyond the 3.7 billion won already charged. They are analysing overall spending records, including internal approval and authorisation materials, the report said.

Lee and the two others were indicted in January last year on allegations of using about 3.7 billion won in company funds through corporate credit cards from 2013 to 2024.

A first-instance verdict for the three family members will be delivered on Wednesday at the Seoul Central District Court. On the same day, a first-instance verdict for Hong, who is accused of breach of trust and embezzlement involving 20.1 billion won, is also scheduled.

Earlier, prosecutors on Dec. 19 last year sought a 10-year prison term and forfeiture of 4.3 billion won for Hong. He is accused of privately using a company-owned villa and vehicles and causing losses to the company by inserting an intermediary firm.