'Gabjil' As Cooking Oil Prices Surge...Kyochon Chicken Fined with Penalty [Y Record]

■ Host: Anchor Lee Jung-seop, Anchor Cho Ye-jin
■ Starring: Professor Chae Sang-mi, Department of Business Administration at Ewha Womans University

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information. Please specify [YTN News START] when quoting.

◇ Anchor> Chicken franchise Kyochon Chicken will be fined hundreds of millions of won, and this is the charge of forcing a distribution margin of 0 won for suppliers?

◆ Chae Sang-mi> According to a survey conducted by the Fair Trade Commission, Kyochon F&B, the operator of Kyochon Chicken, is fined. Kyochon F&B asked its partners to lower their distribution margin to 0 won, which is used to fry chicken. As you know, during the last COVID-19 pandemic, the price of exclusive oil soared by about 20-30%. So, the FTC explains that they did this unfair act. Initially, the distribution margin per 18-liter can of exclusive oil was agreed at 1,350 won at the time of the contract. However, the main contract was to guarantee a minimum distribution margin to these partners and renew the contract on an annual basis. According to the FTC's investigation, the price of exclusive oil soared, so the conditions were forcibly changed during the contract period. Therefore, the FTC has imposed a fine of KRW 283 million along with a correction order.

◇Anchor> I was fined almost 300 million won, but I wonder how much this money is compared to the amount of damage to my partners.

◆If you look at Chae Sang-mi, the distribution margin was applied at 0 won from May to December 2021. So, it was found that partners lost the 715 million won margin that could have been obtained if they had maintained the existing terms of the transaction. However, during the same period, Kyochon F&B's distribution margin showed a slight increase. So, Kyochon F&B explained that F&B did not benefit much from the policy to improve the profits of franchisees, not the headquarters. In addition, it is argued that the profit when collecting waste cooking oil is higher than the profit of supplying new cooking oil. Therefore, the company also clarifies that even if it adjusted the new cooking oil supply margin, it did not lose much, but this has not been reflected. Therefore, an FTC official explained that it can help ease the burden of purchasing exclusive oil by merchants, but unilaterally changed the terms of the transaction, which is unfavorable to suppliers.

◇ Anchor> These days, everyone is living hard, but I think the power trip of such unfair practices should be eradicated.

Excerpted from
: Lee Sun Digital News Team Editor

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