South Korea’s fair trade watchdog is investigating Myeong Ryun Dang, a Korean barbecue restaurant chain, for allegedly providing low-interest loans to its money-lending affiliates using state financing. The Fair Trade Commission revealed that Myeong Ryun Dang offered significant economic benefits to 14 credit businesses by lending funds at notably low interest rates between December 2021 and April 2026.
The restaurant chain operator reportedly utilized funds from Korea Development Bank to provide up to 10 billion won ($6.5 million) per credit business, which was then lent to various stores. The 14 affiliates, facing challenges in securing independent funds as newly established entities, received loans at a relatively low interest rate of 4.6 percent, resulting in economic benefits totaling around 21.7 billion won.
The Fair Trade Commission deemed these actions as severe violations of fair trade regulations, suggesting corrective measures, fines, and potential complaints against the implicated companies and individuals. Additionally, the watchdog approved voluntary corrective actions amounting to 3 billion won ($1.94 million) proposed by Coupang and its private-label affiliate for unfair dealings with subcontractors.
