Family-controlled conglomerates in Korea have long boasted they are engaged in everything from aerospace to zoos, making from chips to ships. Now the chaebol are adding two new items to their business lines: pizzas and fried chickens. People are joking the giant corporations will soon be selling such street snacks as ``gimbap” and ``tteokbokgi.”
The 11,500-won ($10) pizza sold at Emart stores and 5,000-won ($4) buckets of fried chicken at Lotte Mart outlets are actually the so-called ``bait items,” designed to lure consumers to their stores and buy other, more expensive goods.
Emart and its parent group, Shinsegye, and Lotte Group might not care much whether or not they produce profits from these fast food items, priced at half or even one third of market rates. At stake between the nation’s two biggest discount retailers is how to win another battle to emerge as the undisputed No. 1.
For several tens of thousands of mom-and-pop pizza and chicken sellers, however, this brings to mind the proverbial case of numerous shrimps being smashed between two fighting whales. So the Fair Trade Commission should strictly probe whether the two discount mega stores are committing ``unfair dumping,” by selling goods at below production prices for dominating markets.
Chaebol might refute that market principles and consumer welfare should be two business criteria, but they must know there is something like ``ethical management” in capitalism. Moreover, the large corporations are killing these individuals twice, if the self-employed happened to be former chaebol employees kicked out amid manpower trimming.
Consumers overjoyed with ultra-cheap snacks should also think twice, as the sellers’ fate could soon be theirs. The only silver lining of this episode should be that it might remove some of the price bubbles from the neighborhood chicken delivery franchises.