Kwak Yeon-soo is a digital editor at The Korea Times creating, editing and curating digital content for the newspaper’s website, mobile app and social media. She previously covered a diverse array of cultural, political and business topics.
CJ OliveNetworks fined over unfair biz practices
By Kwak Yeon-soo
CJ OliveNetworks logo
By Kwak Yeon-soo
CJ OliveNetworks, which runs Korea's top health and beauty store Olive Young, has been fined 1 billion won ($830,145) for violating the Fair Transaction Law.
According to the Fair Trade Commission (FTC), CJ OliveNetworks returned 570,000 products, worth 4.1 billion won in total, to its suppliers for no legitimate reason and refused to pay for them
In addition, the CJ affiliate did not pay the wages for 559 employees dispatched from 31 suppliers.
The law stipulates that large-scale retailers must pay suppliers within 40 days after consumer purchases, and if payment is delayed, pay interest to suppliers.
However, CJ OliveNetworks failed to pay its four suppliers their due money, worth 2.3 billion won, within the 40 days, and it didn't pay 6 million won in interest either.
The company also held promotional sales between October 2016 and April 2017. However, it forced 11 suppliers to shoulder the 25 million won cost incurred from the discounted prices.
The corporate watchdog also ordered the company to take corrective measures for these unfair trade practices,.
“The latest measure is significant because it's the first crackdown on unfair practices of a health and beauty store,” an FTC official said, adding it will continue to tackle issues hampering fair competition.