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The Fair Trade Commission imposed a 460 million won fine on NH NongHyup One Distribution, a subsidiary of NongHyup, for unfairly treating its suppliers. The commission said on the 22nd that it had imposed the fine on NH NongHyup One Distribution for violating the Fair Trade Act. The company was found to have unfairly treated 32 suppliers between 2015 and 2017 by forcing them to share advertising costs and provide promotional goods worth a combined 1.4 billion won. The company also forced 11 suppliers to bear 140 million won in product storage and management costs. The commission said that the company used its dominant position to unfairly shift its business costs to suppliers. NH NongHyup One Distribution was also found to have received 2.6 billion won in discounts from 21 suppliers for paying for goods and services late. The company said, "We will make sure to prevent such incidents from happening again by strengthening our compliance management system."

Translated from Korean Read in Korean

The Agricultural Cooperative Han-o Roo-transmission was fined 46 million won ($36,200) by the Fair Trade Commission for unfair practices. The Fair Trade Commission issued a prohibition order, a notification order, and a fine of 46 million won against the cooperative for violating the Large-Scale Distribution Business Act. The cooperative operates 24 large and medium-sized department stores nationwide.

According to the Fair Trade Commission's investigation, Han-o Roo-transmission received 187 products that were not classified as new products, but were given the "new product entry incentive" of 3.236 million won due to the products being entered into 하나로마트 after being on the market for more than 6 months. The cooperative set the entry date as the standard for new products, and the cooperative received 10% of the entry fee for products entered into the 하나로마트 for up to 8 years and 9 months after the products were released.

The Fair Trade Commission determined that this was beyond the reasonable scope allowed by law. The Fair Trade Commission's "Sales Promotion Fee Prohibition Judgment Guidelines" states that products released within 6 months of release are considered new products. Han-o Roo-transmission employed 43 sales representatives for 10 different suppliers from April 2021 to January 2024 at 하나로마트.

This is in violation of the requirement to formally notify the sales representatives of their terms and conditions in writing before employment. Han-o Roo-transmission also received complaints for delaying the delivery of contract documents for 426 supply and lease agreements, as well as for the failure to specify the terms of the transaction, the transaction items, and the contract period.

Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at hani.co.kr →

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