Chris F&C Forces Supply Contractors to Buy 124 Million KRW Worth of Its Apparel... 'Correction Order and Fine'

[Asia Economy Reporter Joo Sang-don] Chris F&C, a manufacturer and seller of golf apparel brands such as 'Ping', 'Phantom', and 'Parigates', was caught by the Fair Trade Commission for forcing its suppliers to purchase approximately 124 million KRW worth of its branded clothing.

The Fair Trade Commission announced on the 5th that it decided to impose corrective orders and a fine of 150 million KRW on Chris F&C for such unfair practices.

According to the Fair Trade Commission, from December 2014 to March 2017, Chris F&C demanded 50 suppliers on six occasions to purchase golf apparel under the 'Parigates' and 'Master Bunny Edition' brands from specific department stores or directly operated stores.

Chris F&C set and notified the purchase dates, stores, and amounts (ranging from 500,000 to 2,000,000 KRW per transaction) to suppliers with whom they had contracts, especially targeting stores with upcoming contract renewals or poor sales, to boost sales. Afterwards, suppliers were required to report whether they made the purchases. Ultimately, the 50 suppliers purchased golf apparel worth a total of 124.25 million KRW as per Chris F&C's demands.

The Fair Trade Commission judged that this act falls under the prohibited conduct in Article 12-2 of the Subcontracting Act, as Chris F&C demanded economic benefits for itself from suppliers without justifiable reasons, causing suppliers to fear disadvantages such as suspension or reduction of future subcontracting transactions if they refused.

Additionally, Chris F&C violated the obligation to issue written contracts. From November 2014 to October 2018, Chris F&C issued contract documents to 59 suppliers for garment sewing and raw material manufacturing such as printing and embroidery, without signatures or seals from the contracting parties, or omitted legally required details such as inspection methods of the contracted goods.

A Fair Trade Commission official stated, "This sanctions a well-known business in the golf apparel market that used its economic position to demand economic benefits from its suppliers without justifiable reasons," and added, "We will continue to make efforts to ensure that suppliers do not suffer unfair disadvantages through strict law enforcement against unfair subcontracting transactions in the future."

This content was produced with the assistance of AI translation services.