Company Caught Falsifying Liquid Tea as Red Ginseng Concentrate and Smuggling It Out
[Asia Economy Reporter Cho Hyun-ui] Companies that smuggled liquid tea, a general food product, overseas by falsely labeling it as a health functional food have been caught.
The Ministry of Food and Drug Safety announced on the 8th that it had caught food manufacturer Company A, which produced red ginseng products (liquid tea) with health functional food marks, and Company B, which smuggled them to Vietnam.
The amount illegally manufactured and distributed by these companies was 3,840 kg (16,000 bottles, 240g/bottle), worth approximately 81.5 million KRW.
According to the crackdown results, in December last year, Company A located in Cheonan, Chungnam, illegally manufactured 480 kg (2,000 bottles) of "Goryeo Hong Sam Jeong 365 Gold" (liquid tea) by attaching labels marked as "Health Functional Food 6-Year-Old Red Ginseng Jeong 365 Gold" (20% red ginseng concentrate) provided by Company B located in Wonju, Gangwon-do.
Company B exported all 480 kg (2,000 bottles) to Vietnam without export declaration, receiving 9.5 million KRW.
Additionally, in February this year, Company A manufactured 3,360 kg (14,000 bottles) of the same product, worth about 72 million KRW, and supplied it to Company B without any labeling. Company B then attached marks such as the Good Manufacturing Practice (GMP) certification for health functional foods to the unlabeled products, disguising them as health functional foods, and falsely extended the expiration date from 2 years to 3 years.
Company B subsequently exported 336 kg (1,400 bottles, worth about 8.84 million KRW) of the fake health functional foods to Vietnam. Meanwhile, 2,981 kg (12,422 bottles), worth approximately 63.16 million KRW, were seized just before export.
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The Ministry of Food and Drug Safety identified these companies for violating the "Act on Labeling and Advertising of Foods, etc.," requested administrative action from the relevant local governments, and filed a complaint with the police.
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