NEWS
S. KOREA FINED 2ND BIGGEST WINE RETAILER FOR HAMPERING FAIR COMPETITION
By Siulan Law Mathews DipWSET
6-4-2021
Credit: David Mathews
South Korea's Fair Trade Commission (KFTC) announced that it will fine leading beverage maker Lotte Chilsung Beverage Co. and its wine-selling affiliate MJA Wine a combined 1.1 billion won (USD978,000) for hampering fair competition in the market.
MJA Wine is South Korea’s second biggest wine retailer.
The Yonhap News Agency reported that the South Korean regulator found that Lotte Chilsung had unfairly supported its wholly owned unit MJA Wine for 10 years since 2009 in a bid to improve the affiliate's profitability level.
It is said that Lotte Chilsung had supplied wines to its affiliate at lower prices and shouldered labour costs that MJA Wine should have paid.
The value of economic benefits provided to the wine retailer reached 3.5bn won (USD3.1mn) and Lotte's support helped MJA Wine maintain its No. 2 market position despite its worsening financial situation.
The KFTC said it will refer the case to the prosecution and ordered Lotte Chilsung to take corrective measures.
(the writer can be contacted at: info@thewinechronicle.com)
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