BGF Retail Prepares Emergency Support Measures for CU Franchise Owners Related to COVID-19

[Asia Economy Reporter Seungjin Lee] BGF Retail, the operator of CU, announced on the 25th that it has prepared support measures for franchise owners in response to the novel coronavirus infection (COVID-19).

CU is conducting private professional disinfection at stores visited by confirmed COVID-19 patients or stores presumed to have been visited by multiple suspected cases, with all costs fully covered by the headquarters. Stores that have undergone disinfection will close for 24 hours following health center disinfection guidelines.

For closed stores, the headquarters will fully cover the disposal costs of unsold convenience foods such as lunch boxes, rice balls, and sandwiches on the day of closure and the following day, separate from existing support programs.

Additionally, prioritizing franchise safety and preventing COVID-19 infection and spread, hand sanitizers are being provided to all stores nationwide, and the franchise prevention action guidelines are being strengthened.

Going forward, additional support for hygiene products such as masks and hand sanitizers will be considered for the Daegu and Gyeongbuk regions.

To assist franchise owners struggling due to the domestic demand slump caused by COVID-19, low-interest loans for living stabilization funds are also supported through the ‘Franchise Owner Win-Win Cooperation Fund.’ Loans through this fund offer a 2% interest rate reduction benefit.

BGF Retail delivered a letter from President Geonjun Lee to over 14,000 stores nationwide on the same day. The letter expressed the priority of franchise owners’ health and safety and promised stable product supply, logistics, IT, and sales systems to ensure smooth store operations despite the unsettled situation.

BGF Retail is also extending support to small and medium-sized partner companies facing difficulties due to the sudden domestic demand slump caused by COVID-19. Early payment of settlement funds to these partners will be implemented from this month’s settlement date until the situation stabilizes.

Approximately 20,000 partner companies’ product transaction and logistics settlement funds totaling about 150 billion KRW will be paid up to two weeks earlier than usual. This flexible payment approach aims to support the management of small and medium-sized partners amid challenging economic conditions.

BGF Retail President Geonjun Lee said, “We are constantly considering what can help franchise owners and preparing reasonable countermeasures to wisely overcome this situation together. Having built a strong partnership based on trust and reliance for over 30 years, we believe that by joining forces, we can overcome any difficulties.”

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