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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Dongwon Group subsidiary Dongwon F&B has been ordered by South Korea’s Fair Trade Commission (FTC) to revise certain contract clauses deemed unfair to its dealers.
The FTC found that Dongwon F&B required dealers to pay the full replacement cost for leased equipment, such as refrigerators, even if damage was due to normal wear and tear. Similarly, in advertising support agreements, the company demanded full reimbursement of support funds for damaged promotional materials without considering elapsed usage periods.
While the company did not reportedly enforce these clauses, the FTC determined that such terms exploited its dominant position over dealers. Dongwon F&B has voluntarily corrected the contract terms, and as a result, only a corrective order was issued, without fines.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
