"Gompyo Beer" SevenBrau-Korean Flour Mills Dispute Resolved... "Measures to Strengthen Effectiveness of Dispute Mediation" (Comprehensive)

Korean Flour Mills Contributes 2.3 Billion Won to Win-Win Cooperation Fund
Final Agreement Reached Six Months After Mediation Began
National Assembly Calls for Further Activation of Dispute Mediation

Sevenbrau, which sparked the craft beer craze with "GomPyo Beer," and Daehan Flour Mills have resolved their dispute over alleged technology misappropriation. Daehan Flour Mills has agreed to contribute 2.3 billion won to the Win-Win Cooperation Fund.

On April 16, the Ministry of SMEs and Startups announced that the dispute between Sevenbrau and Daehan Flour Mills had been resolved through mediation by the SME Technology Dispute Mediation and Arbitration Committee.

Precedent Set for Mediation After Over Three Years of Technology Dispute

The Ministry of SMEs and Startups determined that prolonged conflict could negatively impact both companies’ management and the broader business ecosystem, and therefore actively promoted mediation. The parties reached a final agreement three years after the dispute began and six months after mediation started.

In 2020, Sevenbrau and Daehan Flour Mills collaborated to launch "GomPyo Wheat Beer," which became hugely popular with sales of about 60 million cans. However, during the process of ending their trademark contract in 2023, disagreements arose. Daehan Flour Mills selected Jeju Beer Company as its new manufacturer and entered into a licensing agreement, while Sevenbrau alleged technology misappropriation and filed for a preliminary injunction to prohibit sales.

In June 2023, Sevenbrau filed a complaint with the Fair Trade Commission, claiming that Daehan Flour Mills interfered with its business activities. Daehan Flour Mills countered by filing a lawsuit seeking confirmation of non-existence of debt, arguing the damages were unrelated to its company. The suspicion of technology misappropriation was also addressed during a National Assembly audit. As the dispute dragged on, Sevenbrau faced financial difficulties and filed for corporate rehabilitation (court receivership) in May 2025. In June 2025, Sevenbrau filed a damages suit against Daehan Flour Mills. With mediation efforts from the Ministry of SMEs and Startups and the Democratic Party’s Euljiro Committee, the dispute was effectively settled. Kim Kangsam, CEO of Sevenbrau, stated, "This has become an opportunity for Sevenbrau to make a fresh start," and appealed for continued interest and support to help the company recover.

With this mediation, both parties have agreed to withdraw all complaints and lawsuits filed against each other. The fund contributed by Daehan Flour Mills will be used to enhance Sevenbrau's business stability, technology development, and market expansion. The Win-Win Cooperation Fund is a designated fund aimed at promoting technological cooperation between large and small companies, narrowing wage gaps, creating jobs, and supporting startups and ventures. Lee Jinseong, CEO of Daehan Flour Mills, said, "As a long-established company, we will strive even harder to realize and practice the values of our country’s business ecosystem and community."

Byun Taeseop, Chairman of the Foundation for Large, Small, and Medium Business, Agriculture and Fisheries Cooperation, stated, "We will do our utmost to ensure that the amount contributed by Daehan Flour Mills is promptly used to help Sevenbrau recover quickly," adding, "We are preparing for face-to-face consulting with relevant personnel to facilitate swift execution."

At the 'Sevenbrau-Daehan Flour Cooperative Fund Contribution Ceremony' held on the 16th at the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul, officials are taking a commemorative photo after signing the contribution of the cooperative fund. Photo by Hanjin Ju

Need to Enhance Effectiveness of Corporate Dispute Mediation

On this day, a Win-Win Cooperation Fund Contribution Ceremony was held at the National Assembly Members' Office Building to commemorate the agreement and cooperation between the two sides. Attendees included representatives from both companies, Hansung Sook, Minister of SMEs and Startups, officials from the Foundation for Large, Small, and Medium Business, Agriculture and Fisheries Cooperation, the Gyeongcheong Foundation, and members of the Democratic Party’s Euljiro Committee.

Song Jaebong, a lawmaker from the Democratic Party, said, "The fact that mediation was achieved in a relatively short time by the Technology Dispute Mediation Committee demonstrates the Ministry's capacity for arbitration and mediation, and is the result of both companies’ continued dialogue and efforts. I also believe it is meaningful for Sevenbrau and Daehan Flour Mills to further discuss and consider agreements on trademark use and other matters."

Suh Wangjin, a lawmaker from the Innovation Party, stated, "I hope that this does not end as a single case of dispute resolution, but that revisions such as the 'Technology Protection Act' to lower barriers for affected companies and enhance their protection will be realized. I will do my best to foster an environment where the economy is energized and large and small businesses can grow together."

Kim Namgeun, a lawmaker from the Democratic Party, commented, "Resolving technology disputes through litigation consumes significant business resources, and due to limitations in the legal system, the truth often remains unclear. In Korea, the tendency to conclude disputes with a clear winner and loser often hinders efficient resolution. I urge the Ministry of SMEs and Startups to further strengthen the dispute mediation system to address these issues."

Hansung Sook, Minister of the Ministry of SMEs and Startups, is giving a welcome address at the Sevenbrew-Daehan Flour Win-Win Cooperation Fund Contribution Ceremony held on the 16th at the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul. Ministry of SMEs and Startups

The Ministry of SMEs and Startups plans to improve related systems so that issues of technology misappropriation between companies can be resolved through mediation.

Hansung Sook, Minister of SMEs and Startups, stated, "This agreement is a meaningful example that demonstrates how long-standing legal disputes can be fully resolved through mutual understanding and respect. I believe we need to establish measures to strengthen the effectiveness of the dispute mediation system," and added, "The courts should also be proactive in granting extensions for technology dispute cases if requested by the parties, and the committee should be expanded to include former and current judges as mediators. I also think it is necessary to establish a system in which disputes involving less than 50 million won are handled quickly by a single mediator."

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