Samyang fined by FTC for diverting discounts

Home > Business > Industry

print dictionary print

Samyang fined by FTC for diverting discounts

The Fair Trade Commission punished food manufacturer and supplier Samyang Food yesterday for diverting 7 billion won ($6.63 million) in sales incentives intended for a retailer to a subsidiary. The FTC imposed a 2.62 billion won fine and a corrective order on the company.

According to the FTC, Samyang Food was propping up subsidiary Natural Samyang by allowing it to take some of the sales incentives that Samyang Food offers to the nation’s largest discount store chain, E-Mart.

While Samyang Food supplied noodle products directly to Lotte Mart and Homeplus, offering sales incentives of up to 7.9 percent to 8.5 percent, it sold the same products to E-Mart through the subsidiary Natural Samyang.

The mother company offered 11 percent sales incentives to Natural Samyang, which then resold the products to E-Mart with discounts of only 6.2 percent to 7.6 percent. The companies followed this practice for five years.

BY KIM JUNG-YOON [kjy@joongang.co.kr]

More in Industry

Korea Shipbuilding signs ₩87.5 billion deal to build LPG carrier

DMI to develop drone-based marine charting system

Graft regulations eased to allow for more expensive gifts

Hanwha is first Rolls-Royce supplier permitted to handle quality control

Live commerce, perfect for the pandemic, is all the rage

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now