As the National Assembly audit approaches next month, the retail and food industries are closely watching developments in the legislature. This year, significant issues have arisen in the retail sector, including a clash between Coupang and the Fair Trade Commission (FTC), the Homeplus situation, price collusion on food raw materials, and industrial accidents. Additionally, controversies surrounding Starbucks Korea's marketing and regulatory changes regarding early morning deliveries at large supermarkets are expected to lead to numerous summonses in various committees.
According to industry sources on September 16, the National Assembly audit will take place from October 6 to 27. While the list of witnesses and reference persons for each committee has not yet been finalized, companies are monitoring the situation closely.
Coupang is viewed as the focal point of this year's audit. The FTC conducted an on-site investigation last month over allegations of violations of the Large-Scale Retail Business Act, but Coupang refused to cooperate, claiming there was no proper prior notification. This has led to ongoing disputes over the FTC's investigation procedures and authority, with concerns about data breaches and safety incidents at logistics centers also likely to be raised.
The Homeplus situation is another major issue. The Seoul Bankruptcy Court approved a rehabilitation plan on October 2, averting immediate liquidation, but challenges remain regarding debt repayment and business normalization. The management responsibility of major shareholder MBK Partners and the protection of stakeholders, including partner companies and store owners, which were heavily scrutinized during last year's audit, may also resurface as contentious points.
In the food industry, the issue of price collusion on raw materials is drawing attention. The FTC imposed a total fine of 671 billion won on seven flour manufacturing and sales companies for colluding on prices and quantities over six years. Additionally, four companies, including Daesang, Samyang Foods, and CJ CheilJedang, were fined 747.6 billion won for colluding on starch and starch syrup prices. Including previous fines for sugar collusion, the total fines for food raw material collusion this year have exceeded 1.8 trillion won. Given that flour and starch are used in various processed foods such as bread, snacks, and beverages, the issues of food prices and fair trade are likely to be discussed during the audit amid rising inflation.
At Shinsegae Group, the controversy surrounding Starbucks Korea's 'Tank Day' remains unresolved. Following a promotional wording controversy in May, management changes and internal process overhauls were implemented, but a police investigation is ongoing. The decision-making process leading to the creation and public release of the marketing wording and the internal verification system may be points of contention.
Industrial accidents are also a pressing concern for the food industry. This year, companies such as Maeil Dairies, Our Home, and Samlip have experienced worker fatalities and safety incidents at manufacturing sites, raising questions about the causes of these accidents, the primary contractor's safety management responsibilities, and measures to prevent recurrence. In particular, for workplaces where similar accidents have repeatedly occurred, the effectiveness of the company's safety management system is expected to be scrutinized.
Additionally, discussions are underway in the National Assembly regarding lifting restrictions on late-night operations for large supermarkets' online orders and deliveries to allow early morning deliveries. As the retail market rapidly shifts toward online platforms, there is a clash between the retail industry's call for regulatory adjustments and the opposing view advocating for the protection of local businesses and workers, suggesting that related discussions will continue during the audit.
An anonymous source from the food industry stated, "The witness list has not yet been finalized, so we have not entered the stage of formal responses. However, given the numerous pressing issues this year, we are watching the National Assembly's movements with concern."
* This article has been translated by AI.
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