FTC expands probe into bullying of SMEs

The Fair Trade Commission said Tuesday that it launched a full-fledged probe into 23 companies in a bid to reveal some of their headquarters’ alleged bullying of retail stores.

The 23 firms belong to eight industry sectors ― automobile, dairy, liquor, cosmetics, beverages, bakeries, ice cream and ramen.

While the antitrust regulator said it had been conducting written-based inquiries into the companies since June 3, it hinted that it would widen the scope of the probe by dispatching a group of inspectors to the industries.

The FSC clarified that it would take disciplinary action against companies engaged in unfair deals with sales agents or retail stores.

Baesangmyun Brewery, a leading maker of traditional alcoholic beverages, has been under fire for allegedly forcing wholesalers to buy more products than they needed and products close to their expiry date.

Namyang Dairy Products’ heavy-handed business practices angered consumers and led to a series of boycotts.

In particular, Namyang was also severely criticized after an audio file of one of its officials verbally abusing a wholesaler went viral on the Internet.

In the conversation between the Namyang official and the wholesaler, the official in his 30s shouted and berated the elder man in his 50s, ordering him to buy more products.

By Kim Yon-se (kys@heraldcorp.com)