 |
Photo = Binggrae |
[Alpha Biz= Kim Jisun] South Korea’s Fair Trade Commission (KFTC) has launched an on-site investigation into Binggrae Co. over allegations of unfair business practices favoring a logistics company fully owned by the chairman’s children.
According to industry sources on Monday, KFTC officials visited Binggrae’s headquarters in Jongno-gu, Seoul, and its subsidiary Haetae Ice Cream to collect evidence related to suspected violations of the Fair Trade Act.
Binggrae is accused of improperly intervening in its subsidiary Haetae Ice Cream’s decision-making process to switch suppliers for packaging and snack products — including for its flagship “Bravo Cone” ice cream — to a logistics company named Jette. The company Jette is wholly owned by Chairman Kim Ho-yeon’s three children.
Under Korea’s Fair Trade Act, companies are prohibited from providing undue support to affiliates or related entities by offering them assets, goods, or services under terms more favorable than normal market conditions. If Binggrae terminated existing contracts with competitive suppliers without justifiable reason in favor of a company owned by the chairman’s family, it could be deemed an unfair support practice that distorts market competition.
A Binggrae spokesperson stated, “We will fully cooperate with the Fair Trade Commission’s investigation.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
