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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s Fair Trade Commission has launched on-site inspections into major retail chains CJ Olive Young and Asung Daiso over potential violations of fair trade regulations.
According to industry sources on April 20, FTC officials were dispatched to the headquarters of both companies to collect transaction-related data.
The regulator is reportedly focusing on whether the companies engaged in practices that may violate the Act on Fair Transactions in Large Retail Business, which governs fair dealings between large retailers and their suppliers.
Company officials from both Olive Young and Daiso stated that they understand the inspections to be part of a general review of compliance with the retail law.
The investigation comes after the FTC released a report in December highlighting fee structures among major retail brands. According to the findings, Olive Young recorded a significantly higher effective commission rate compared to peers.
Its online platform had an effective commission rate of 23.52%, substantially above the roughly 10% level seen at other retailers. In its offline specialty stores, the effective commission rate reached 27%.
The probe is expected to draw attention to commission practices and fairness in supplier relationships within South Korea’s retail sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
