Apple, Costco, Nike, Adidas asked to testify about alleged misconduct
Apple Korea President Mark Lee, left, and Costco Wholesale Korea Country Manager Cho Min-soo / Courtesy of Applied Materials Korea, Newsis
Heads of the Korean units of Apple, Costco Wholesale, Nike, Adidas and multiple other foreign firms were selected as witnesses to testify about misconduct allegations involving their companies during the upcoming National Assembly audit this month, according to industry officials, Thursday.
Apple Korea President Mark Lee was summoned for the National Policy Committee’s audit of the Financial Services Commission scheduled for Oct. 11, along with Kim Deok-hwan, CEO of Hyundai Card, the U.S. firm’s Korean partner to provide the Apple Pay service here.
Lawmakers expressed concerns about the alleged passing on of costs to consumers and causing inconveniences in the use of their services. The Apple Korea president is also expected to face questions on alleged violations of Korea’s antitrust and privacy regulations, raised by Rep. Lee Yong-woo of the main opposition Democratic Party of Korea (DPK), who made an issue of the payment methods concerning Apple Pay.
“Apple’s alleged monopoly is nothing new,” the lawmaker told Fair Trade Commission (FTC) Chairman Han Ki-jeong in February.
Costco Wholesale Korea Country Manager Cho Min-soo was summoned to the Environment and Labor Committee’s audit of the Ministry of Employment and Labor on Oct. 12, to address the death of company employee Kim Dong-ho, who died at age 29 in June after collapsing in a sweltering parking lot at its branch in Hanam, Gyeonggi Province.
His death led the labor ministry to impose a 30 million won ($22,000) fine on Costco and check whether the company violated the Serious Accidents Punishment Act, which can send a company’s chief manager to prison if a serious worksite accident occurs where the company had not taken sufficient safety precautions.
The deceased worker’s brother and the Korean Mart Labor Union’s leader will also attend the audit session to explain how the company has dealt with the case.
Nike Korea General Manager Kimberlee Lynn Chang Mendes, right, answers questions from Rep. Hong Jung-min of the Democratic Party of Korea at the Assembly's Trade, Industry, Energy, SMEs and Startups Committee's audit of the Ministry of SMEs and Startups, Oct. 6, 2022. Screenshot from National Assembly website
Nike Korea General Manager Kimberlee Lynn Chang Mendes, Kanebo Cosmetics Korea CEO Michinao Higashiura and Pernod Ricard Korea CEO Frantz Hotton have been summoned to appear on Oct. 17 at the Environment and Labor Committee’s audit of the Economic, Social and Labor Council.
Nike has come under criticism over the past three years, as it abruptly stopped using shoe materials from its local supplier, Sukyoung Textile, which claimed it had been forced by the U.S. firm to provide its materials at a cheaper price. However, the American sportswear company has evaded the application of the fair trade law here by founding intermediate agencies dealing with local suppliers.
When the Nike Korea general manager appeared at last year’s audit, she was criticized for citing translation issues as an excuse for wasting time in answering simple questions.
Adidas Korea General Manager Peter Kwak
The Kanebo Cosmetics Korea head is alleged to have violated the Labor Standards Act by ordering an employee to serve as a nurse for his wife and search for cosmetic products for his children. Pernod Ricard Korea is alleged to have suppressed its labor union. The liquor firm was also fined 918 million won last year for giving illegal rebates to bars.
Adidas Korea General Manager Peter Kwak was summoned to the National Policy Committee’s audit of the FTC on Oct. 16, along with the leader of a group of Adidas franchisees in Korea, to answer questions on the company’s alleged violations of the Fair Transactions in Franchise Business Act.
Meta Korea Country Director Kim Jin-ah was summoned to the Trade, Industry, Energy, SMEs, and Startups Committee’s audit of the Ministry of SMEs and Startups and the Korean Intellectual Property Office on Oct. 12, to answer how the company has handled ads on Instagram and Facebook for counterfeit goods.