Fair Trade Commission Conducts On-Site Investigation of Olive Young Over Alleged Coercion of Suppliers

Olive Young States "Will Cooperate Fully with Investigation"

The Fair Trade Commission has launched an on-site investigation into allegations of 'gapjil' abuse against suppliers by the health and beauty (H&B) store CJ Olive Young.

According to the distribution industry on the 10th, the Seoul office of the Fair Trade Commission sent investigators to CJ Olive Young's headquarters office in Yongsan-gu, Seoul, this morning to secure materials related to supplier contracts.

CJ Olive Young operating in downtown Seoul. Photo by Jinhyung Kang aymsdream@

The Fair Trade Commission is reportedly investigating allegations that Olive Young engaged in unfair practices, such as pressuring suppliers not to participate in the 'Musinsa Beauty Festa' hosted by Musinsa. It is known that the investigation began after receiving a related complaint through the national petition system.

Musinsa's beauty brand event, Beauty Festa, was held from the 19th of last month to the 8th of this month. Marking its third year, this year's Beauty Festa was held simultaneously online and offline, with an offline pop-up event called 'Musinsa Beauty Festa IN Seongsu' taking place in Seongsu-dong, Seoul, from the 6th to the 8th of this month. This was Musinsa's first offline event related to beauty.

Previously, in December last year, Olive Young was ordered to correct its practices and fined approximately 1.9 billion KRW for allegedly pressuring suppliers not to participate in competitors' promotional events.

An Olive Young official said, "Despite our efforts to promote compliance management and coexistence within the industry, we deeply regret the recent controversies involving our partners," adding, "We will sincerely cooperate with the investigation and actively take necessary measures if required."

In this regard, a Musinsa official stated, "Since the Fair Trade Commission has initiated an investigation, we have decided to observe the progress and results of the investigation."

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