[2023 National Audit] Han Ki-jung, Fair Trade Commission Chair, "Strict Measures if LG Household & Health Care Violates Franchise Business Act"

Ki-jung, Chairman of the Fair Trade Commission, stated on the 26th regarding the suspicion of LG Household & Health Care's 'unfair termination of franchise contracts,' "A report has been received and is under review," adding, "If a violation of the Franchise Business Act is confirmed, strict measures will be taken."

Han Ki-jung, Chairman of the Fair Trade Commission, is responding to lawmakers' questions at the National Assembly's Political Affairs Committee audit on the 16th. Photo by Hyunmin Kim kimhyun81@

On the same day, Chairman Han responded to related inquiries from Min Byung-duk, a member of the Democratic Party of Korea, during the comprehensive audit of the National Assembly's Political Affairs Committee.

Rep. Min said, "LG Household & Health Care franchise stores are not guaranteed the right to request renewal and are being forced to change agencies," adding, "Franchisees receive much greater protection than agencies, and this seems to be a means to evade that." In response, Chairman Han stated, "The issue will be whether contracts were unfairly terminated or renewals refused during the contract period," and reiterated, "If a violation of the Franchise Business Act is confirmed, strict measures will be taken."

LG Household & Health Care recently announced that it is proposing to franchisees a plan to change the offline franchise contract structure from a 'franchise contract' to a 'goods supply contract' and is conducting related consultations. This essentially implies an intention to exit the cosmetics franchise business.

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