[Alpha Biz= Ellie Kim] BGF Retail, operator of the CU network, has completed compensation payments to franchisees affected by the truckers’ strike. However, a full recovery in store-level operations is expected to take time as disruptions persist.

According to the retail industry on May 11, the CU Franchisee Association is recruiting store owners to participate in a damages lawsuit against the Korean Confederation of Trade Unions’ Cargo Truckers Solidarity Division. The association aims to enlist 500 participants in the first round by May 15 and is currently consulting with two major domestic law firms and a specialized attorney. Litigation costs will be fully covered by the association.

Previously, on May 6, the association sent a formal notice demanding KRW 14.04 billion in compensation from the truckers’ union. The claim includes KRW 10.28 billion in property damage and KRW 3.76 billion in compensation payments, calculated at KRW 200,000 per store. The lawsuit is being pursued as a follow-up measure.

Tensions between franchisees and truck drivers have continued, with issues such as delivery refusals and disputes over inspection procedures still arising.

“Refusing deliveries is effectively equivalent to halting operations, making it difficult in practice, but the financial losses during the strike have deepened tensions,” an industry official said. “While headquarters is focused on supporting franchisees’ recovery, it has limited ability to directly intervene in ongoing conflicts or legal disputes at the store level.”

Despite the normalization of logistics centers, product shortages persist at some locations. While ordering systems have resumed normal operations, stores have continued to receive same-day out-of-stock notifications after placing orders, adding to operational strain. These difficulties were exacerbated by the early May holiday period and promotional campaigns linked to platforms such as Toss.

The strike’s impact is also expected to weigh on BGF Retail’s second-quarter performance. Following the April 30 settlement, the company provided financial support and consolation payments to franchisees nationwide. Compensation covered 100% of lost gross profit from out-of-stock refrigerated and frozen products between April 5 and April 30, as well as full reimbursement for discarded ready-to-eat meals. Additional consolation payments were provided on a tiered basis, with up to KRW 300,000 by region and KRW 700,000 per store.

Although BGF Retail has not disclosed the total amount of support, industry estimates suggest it reached around KRW 10 billion. Combined with lost sales during the strike, the compensation burden is expected to weigh on second-quarter earnings.

BGF Retail said it will focus on restoring sales and minimizing operational disruptions, while also anticipating support from the expanded eligibility of government fuel cost subsidies for use at convenience stores.

 

 

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