Theborn Korea chief points finger at YouTubers for fueling scandals

Theborn Korea CEO Paik Jong-won speaks during a meeting with journalists at a restaurant in Seoul which is run by the company, Tuesday. Courtesy of Theborn Korea

Food franchise mogul and Theborn Korea CEO Paik Jong-won criticized YouTubers and online trolls for fueling scandals against him and his company, highlighting the company's dedication to its franchisees and intent to keep developing regional economies outside the capital region through food festivals.

Paik’s argument came after he and his company have been rocked by scandals and public criticisms, including issues with product sourcing, food safety and quality. The company is currently the target of police investigations on allegations of false advertising.

During a series of press conferences on Monday and Tuesday, Paik said he has been maintaining “good ties” with his franchisees by supporting their businesses. The company now operates 22 brands with restaurant, takeout, pub and coffee shop sector franchises. He said his anti-fans have been uploading videos and posting photos trying to incriminate the company.

“They kept reproducing and uploading videos and posts mentioning a few same problems we had blundered over and over again, even after I admitted those mistakes through official apologies," Paik said during a press conference at one of his restaurants in Seoul, Monday. "They were purely malicious."

“Those online posts fueled news reports criticizing me and our businesses. This hostility hurt not only me and the company's employees but also our franchisees. Our franchisees try to keep running their businesses under these scandals that are unfavorable to them. But these YouTubers kept coming after them and cajoling them into saying bad things about me.”

A Paik's Noodle restaurant in Seoul, one of the brands run by Theborn Korea, displays posters notifying the restaurant is now offering selective menu items for discounted prices, Tuesday. Yonhap

Paik admitted the scandals have generated an unfavorable mood toward the franchisees and company shareholders. He added he will keep supporting them and try to recover their public image through discount events.

The company on Monday launched a two week-long event across the company’s entire restaurant and takeout brand range with discounts of up to 50 percent, saying the company would cover all the associated costs. Last week, it also announced it will roll out a 30 billion won ($21 million) business support package to further promote their brands and support operations.

“Our franchisees will see higher sales through this discount event. It’s our bid to solidify our partnership with them,” Paik said.

Paik said his immediate goals are supporting the franchises, developing regional economies through participating in local food festivals and expanding the company’s sauce products to the global market.

“The reason I put my face on signboards of our stores and restaurants is that I want our franchisees to benefit from my public image and that of the company. I also want to make our food festivals successful and say out loud, ‘Look how well we’ve done over here!’ because I want to show our company’s capabilities,” Paik said. “We’re also currently developing eight different sauces that will make cooking Korean foods easy for foreigners.”

Paik, a popular entertainer, announced last week on YouTube he will stop appearing in all programs to dedicate his efforts to the company and its operation.