Myeongnyun-dang announces legal action against a fine of 14.8 billion KRW from the Fair Trade Commission

Myeongnyun-dang, the operator of Myeongnyun Jinsagalbi, is set to initiate legal action following a fine imposed by the Fair Trade Commission. On September 28, Myeongnyun-dang issued a statement expressing that while they take the commission's decision seriously, they believe certain judgments do not adequately reflect the intentions behind the regulation and its practical application.

The company claims that the disputed financial support system was designed to assist franchise hopefuls and owners facing difficulties in securing funds during initial startup or renewal phases. Previously, the Fair Trade Commission determined that Myeongnyun-dang provided improper support by lending a total of 298.3 billion KRW at low interest rates to 14 loan companies owned by the family of Chairman Lee Jong-geun.

Additionally, it was noted that Myeongnyun-dang failed to properly inform franchise hopefuls about the special relationship with the loan companies and related loan details. Consequently, the commission has imposed a fine of over 14.8 billion KRW and has decided to report Myeongnyun-dang and Chairman Lee to the prosecution.

Myeongnyun-dang also emphasized that a separate criminal procedure had reached a different conclusion. The company stated that both the prosecution and police recently determined there was no wrongdoing in related loan matters. Myeongnyun-dang plans to review the commission's decision before proceeding with legal action, asserting that they will seek court judgment on the appropriateness of the commission's findings and sanctions. They further expressed a commitment to improving transparency and trust in franchise operations moving forward.

Reported by ZDNet Korea.