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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, South Korea – October 23, 2025 – Kyochon F&B, one of South Korea’s leading fried chicken chains, is facing renewed controversy after a senior executive criticized franchise owners and the media in an internal message following public outrage over what has been dubbed the company’s “shrinkflation” scandal.
According to industry sources, Lee Sang-ro, Head of Kyochon’s Domestic Business Division, posted a message on the company’s internal network expressing frustration over the leak of a corporate notice to the media.
“The leak of our internal product improvement notice to the press has caused severe damage to the brand’s reputation,” Lee wrote.
“Media reports focused on ‘reduced portion sizes’ and ‘mixed breast meat,’ framing our efforts to enhance taste and quality as a cost-cutting measure.”
Lee also lamented the political fallout, saying the company was “publicly reprimanded in the National Assembly” and that the “Presidential Chief of Staff even mentioned Kyochon as a prime example of shrinkflation.” He accused a “small number of franchise owners” of leaking information with questionable motives, though he admitted that the company failed to communicate sufficiently with consumers and franchisees.
The controversy erupted last month after Kyochon reduced the portion size of its boneless chicken menu by about 30% while introducing a mix of chicken breast meat—a move widely criticized by consumers as a disguised price hike.
Facing backlash from consumers, lawmakers, and government officials, Kyochon announced today that it will reverse the menu changes, restoring the original portion sizes.
“We humbly accept customer feedback and will revert the four boneless chicken menu items to their original specifications,” the company said in a statement.
During a recent National Assembly audit, Kyochon CEO Song Jong-hwa admitted shortcomings in communication, stating,
“We put franchise owners first, but we acknowledge that our explanation to customers was insufficient.”
Meanwhile, the South Korean government is moving to address shrinkflation practices across the food and retail sectors.
At a price stability meeting held at the Seoul Government Complex, First Vice Minister of Economy and Finance Lee Hyung-il directed officials to develop comprehensive countermeasures by year-end, emphasizing the need for “swift action to curb deceptive product downsizing in restaurant and franchise industries.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
