Lotte Hi-Mart's 'Gapjil' Toward Suppliers... Court Upholds Fair Trade Commission's Corrective Order
The court ruled that the Fair Trade Commission's order to correct Lotte Hi-Mart for requiring dispatched employees from suppliers to sell products of other companies was justified.
On the 12th, the Administrative Division 6-2 of the Seoul High Court (Presiding Judges Wi Gwang-ha, Hong Seong-wook, Hwang Ui-dong) ruled against Lotte Hi-Mart in its lawsuit seeking to cancel the correction order filed against the Fair Trade Commission.
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In December 2020, the Fair Trade Commission found that Lotte Hi-Mart had engaged in unfair practices by using employees dispatched from suppliers on a large scale for a long period, improperly receiving sales incentives from suppliers, and retroactively increasing logistics agency fee rates. The Commission determined that these actions violated the Large-scale Distribution Business Act and imposed a correction order to prevent recurrence along with a fine of 1 billion KRW. While Lotte Hi-Mart paid the fine, it filed a lawsuit claiming that the correction order was unjust and sought its cancellation.
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