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, including a clash between Coupang and the Fair Trade Commission, 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, 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.
In the retail sector, Coupang is viewed as the focal point of this year's audit. The Fair Trade Commission conducted an on-site investigation last month over allegations of violating the Large Retail Business Act, but Coupang refused to cooperate, claiming there was no legal prior notice. This has led to a legal battle involving cancellation lawsuits and requests for injunctions, raising questions about the commission's investigative procedures and authority. Issues such as data breaches and safety incidents at logistics centers may also be discussed.
The Homeplus situation is another major concern. The Seoul Bankruptcy Court approved a rehabilitation plan on September 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, are likely to be contentious topics again.
In the food industry, the issue of price collusion on raw materials is drawing attention. The Fair Trade Commission imposed a total of 671 billion won in fines 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 like bread, snacks, and beverages, the issues of food prices and fair trade are expected to be raised during the audit amid high 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 have occurred, 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 scrutinized.
Industrial accidents are also a pressing concern for the food industry. This year, several food manufacturing sites, including Maeil Dairies, Our Home, and Samlip, have experienced worker fatalities and safety incidents, raising the likelihood that the causes of these accidents, the primary contractor's safety management responsibilities, and measures to prevent recurrence will be addressed during the audit. In particular, for workplaces where similar accidents have repeatedly occurred, the effectiveness of the company's safety management system is expected to be a point of contention.
Additionally, discussions are underway in the National Assembly regarding lifting restrictions on late-night operations for online orders and deliveries at large supermarkets 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 in the food industry stated, "The witness list has not yet been finalized, so we have not officially begun our response. However, given the numerous issues this year, we are watching the National Assembly's movements with tension."
* This article has been translated by AI.
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