Myeongryundang Announces Legal Action Against 14.9 Billion Won Fine, Citing "Purpose Was to Support Franchisee Funding"

Fair Trade Commission Imposes 14.9 Billion Won Fine on Myeongryundang

3 Trillion Won in Unfair Support Provided to Lending Firms Owned by the Myeongryundang Family

“Myeongryundang Plans to Seek Court Ruling”

Myeongryundang, the operator of Myeongryunjinsagalbi, has announced plans for legal action after the Fair Trade Commission imposed a fine of 14.9 billion won for unfair support and violation of franchise business law, and referred both the corporation and Chairman Lee Jonggeun to the prosecution.

Myeongryunjinsa Galbi.

On September 28, Myeongryundang released an official statement saying, "We take the decision of the Fair Trade Commission seriously," but added, "The company believes that in some aspects, the purpose of the system’s introduction and the actual operational process were not sufficiently taken into account in the judgment."

The statement added, "This financial support program has been operated to assist potential and existing franchise owners who struggle to raise funds at the initial stage of business establishment and during the renewal process."

Myeongryundang emphasized, "In separate criminal proceedings related to the lending business, both the prosecution and the police previously issued non-indictment decisions," and continued, "After thoroughly reviewing the specific content and basis of the Fair Trade Commission’s decision, we plan to seek a court ruling on the appropriateness of the judgment and the level of sanctions through the necessary legal procedures."

Myeongryundang also stated, "We will use this incident as an opportunity to make our entrepreneurship support and information provision procedures more transparent and clear, and will strive to promote co-prosperity with franchisees and build greater trust in our franchise business."

The Fair Trade Commission has issued a corrective order and provisionally imposed a fine of 14,872 million won on Myeongryundang for unfair support and violations of franchise business law, deciding to refer both the corporation and Chairman Lee Jonggeun to the prosecution.

The Fair Trade Commission believes that Myeongryundang granted loans of approximately 300 billion won at lower-than-market interest rates to 14 lending businesses owned by the chairman’s family, and also used 79 billion won in working capital obtained from the Korea Development Bank at low interest rates.

This content was produced with the assistance of AI translation services.