Watchdog begins deliberations on popular Korean grill chain operator
A Myeong Ryun Jinsa Pork Ribs store, a restaurant chain operated by Myeong Ryun Dang / Yonhap
Korea's fair trade watchdog said Monday it has launched a deliberation process into Myeong Ryun Dang, which operates a Korean barbecue restaurant chain, for allegedly offering low-interest loans to its money-lending affiliates using funds from state financing programs.
The Fair Trade Commission (FTC) said its examiners' report showed Myeong Ryun Dang, which operates Myeong Ryun Junsa Pork Ribs, offered excessive economic benefits to 14 credit businesses under its wing from December 2021 to April 2026 by lending funds at significantly low interest rates.
The report showed the restaurant chain operator provided up to 10 billion won (US$6.5 million) per credit business using funds raised through policy financing from Korea Development Bank, with the affiliates then lending the money to stores.
The 14 affiliates, which had faced difficulties securing funds independently as newly launched entities, received funds from Myeong Ryun Dang at a relatively low interest rate of 4.6 percent.
The FTC said such arrangements allowed the 14 companies to enjoy economic benefits of around 21.7 billion won.
The examiners' report said such actions were serious violations of the country's fair trade rules, recommending corrective orders, fines and filing complaints against the companies and individuals involved.
The watchdog said it plans to make a final decision after guaranteeing the respondent's right to defense. The examiner's report, meanwhile, does not bind the FTC's final determination.