Hite Jinro fined for false anti-Lotte ads

By Park Si-soo

Hite Jinro, one of the country’s largest liquor makers, has been fined 143 million won ($129,300) for running a false advertising campaign against its main competitor, Lotte Chilsung Beverage.

According to the Fair Trade Commission (FTC) on Monday, Hite Jinro distributed fliers and banners between March and May in 2012 claiming that Lotte’s Chum Churum soju is harmful and is distilled in an unlawful manner.

Chum Churum is the nation’s best-selling soju, and is engaged in fierce competition with Chamisul soju of Hite Jinro.

The FTC said Jinro carried out such attacks mainly in Seoul and surrounding areas, knowing the allegations it raised were baseless.

“It even tried to make it look like as if bars, restaurants and liquor stores took it upon themselves to attack Lotte when, in fact, such actions were coordinated with Hite Jinro's head office,” an FTC officer said.

The regulator said such defamatory actions were designed to confuse consumers and violated the country's fair trade rules.

The FTC said the penalty will send a message that it will deal firmly with false advertisements that distort fair and open competition.