bhc partially wins against BBQ... Court orders payment of 29 billion KRW

[Asia Economy Reporter Kim Hyo-jin] Chicken franchise bhc has won a partial victory in a lawsuit filed against competitor BBQ.

The Seoul Central District Court Civil Division 16 (Presiding Judge Lim Ki-hwan) ruled on the 14th in the lawsuit filed by bhc against BBQ for product supply payments, ordering "BBQ to pay bhc approximately 29.06 billion won."

BBQ sold its former subsidiary bhc to a U.S.-based private equity fund in 2013, entering into a contract that "bhc will supply logistics services and ingredients to BBQ affiliates for 10 years," and also sold the logistics center. Additionally, an exclusive product supply contract was signed to receive sauces, powders, and other items from bhc for 10 years.

Subsequently, BBQ terminated the logistics service contract and product supply contract in 2017, citing concerns that trade secrets such as new menu development information were leaking during the logistics supply process from bhc.

In response, bhc filed a lawsuit in February 2018 claiming damages exceeding 50 billion won for product supply payments, arguing that BBQ unilaterally terminated the contract and is liable for damages due to non-performance.

BBQ countered in court, stating that "bhc engaged in unfair acts that destroyed the trust relationship fundamental to the contract, making it impossible to expect the contract to continue," denying liability for damages.

The court ruled in favor of bhc, stating, "It cannot be recognized that the plaintiff (bhc) engaged in unfair acts that destroyed the trust relationship or that there were significant reasons making it impossible to expect the continuation of the product supply contract." BBQ's claim that bhc unfairly infringed on management information was also not acknowledged.

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