Taisun Benefits While Chung Lien Faces Toxic Oil Scandal? Hsieh Jin-He Reveals 'Mismanagement' Tragedy: Switching Equipment from Europe to This Country Caused Disaster

The controversy over Chung Lien Oils' soybean salad oil, which was found to contain benzopyrene levels exceeding safety standards, continues to escalate. Opposition groups recently held a protest on Ketagalan Boulevard against 'toxic oil,' intensifying public concern. In response, Common Wealth Media Chairman Hsieh Jin-He posted on Facebook, stating that the root cause of this toxic oil crisis lies in mismanagement. He pointed out that after leadership changed from former chairman Hsu Chung-Ming to Hung Yao-Kun, and equipment previously imported from Europe was replaced with cheaper Chinese-made machinery, combined with issues in imported soybeans, the stage was set for this edible oil crisis.

Hsieh noted that in Taiwan's edible oil market, Taisun holds 55% market share, Chung Lien Oils about 35%, with the remainder shared by Chang Hui and Taisugar, forming a 'two major, two minor' structure. In recent years, Taisun has performed exceptionally well, consistently achieving EPS above NT$8 and distributing NT$7 in dividends annually, making it a top-performing company in the food sector. Led by Uni-President, with Chairman Lo Chi-Hsien, Uni-President holds 38.5%, Tai Hwa Oils 12.99%, and Da Cheng Chang 9.64%. The company has maintained stable operations.

Chung Lien Oils was founded in 1995 by Hsu Chung-Ming, elder brother of Hua Cheng Motor Chairman Hsu Pang-Fu. While Hsu Pang-Fu and Hsu Yi-Te have successfully managed Hua Cheng, Hsu Chung-Ming and his son Hsu Yi-Chun have focused on the oil industry. Chung Lien was jointly funded by Fu Mao Oil, Fu Shou, and Taishan, each contributing one-third.

Hsu Chung-Ming served as chairman for years, but later faced disputes when Wu Chin-Chuan used Hsing Tai's funds to manipulate Fu Mao Oil's stock. Originally a loss-making company, Chung Lien turned profitable, prompting Taishan and Fu Shou to jointly appoint Hung Yao-Kun as chairman. Initially, Chung Lien used European-imported equipment, but later switched to Chinese-made equipment to reduce costs. Combined with problematic soybean imports, this decision laid the foundation for the current crisis.

Chung Lien is located at Taichung Port, enabling fully integrated operations from soybean import to production. As a deep-water port, Taichung offers significant logistical advantages. In contrast, Taisun's facility in Guantian requires trucking soybeans from Kaohsiung or Taichung ports, resulting in higher logistics costs. Yet, through effective management, Taisun consistently delivers strong performance, pleasing shareholders.

Hsieh emphasized that market-oriented investors have taken control of Chung Lien's three major shareholders—Fu Shou's Hung family, Taishan, and Fu Mao Oil—manipulating shareholders without genuine commitment to core operations, which he identifies as the true source of the crisis. In January last year, Hsu Chung-Ming filed a formal complaint accusing Wu Chin-Chuan's family of asset stripping, but no investigation has followed. Hsieh stressed that corporate governance must come first—unethical leadership leads to corporate disasters, just as poor national governance leads to national crises.