Tensions are rising in the retail and food industries as next month's National Assembly audit approaches. With major issues piling up, including the Homeplus crisis, price-fixing in the food sector, and Coupang's personal data breach, industry insiders express concern that the audit will focus on criticizing companies, as it has in past years, rather than formulating institutional alternatives.
According to political circles and the retail and food industries on the 27th, the National Assembly audit will run from the 6th to the 27th of next month. Issues related to the retail and food sectors are expected to be addressed in the Committee on Trade, Industry, Energy and Small and Medium Enterprises (Trade, Industry, Energy and SMEs), the Committee on Agriculture, Food and Rural Affairs and Fisheries, and the Committee on Finance.
The Committee on Trade, Industry, Energy and SMEs plans to summon Kim Byung-ju, Chairman of MBK Partners, as a witness for the Ministry of SMEs and Startups audit to question him about the Homeplus crisis. Although Homeplus avoided liquidation after the Seoul Bankruptcy Court approved its rehabilitation plan on the 2nd of this month, challenges remain, including debt repayment and mergers and acquisitions (M&A).
The Committee on Agriculture, Food and Rural Affairs and Fisheries has summoned witnesses including Cho Yeong-sik, Vice President of CJ CheilJedang; Lee Un-ik, CEO of Samyang Foods; and Park Yun-gi, CEO of Lotte Chilseong. Since CJ CheilJedang and Samyang Foods were fined by the Fair Trade Commission for price-fixing in the manufacture and sale of flour and starch/starch sugar, questions are expected regarding these practices and measures to prevent recurrence. As a major buyer receiving sugar supplies from sugar manufacturers, Lotte Chilseong is likely to face inquiries about the price formation structure of the domestic B2B sugar market.
Issues related to Coupang are also cited as key points of contention in the audits of the Committee on Science and ICT (Science and ICT) and the Committee on Finance. The Science and ICT Committee will summon Brett Anthony Mattis, Coupang's Chief Information Security Officer (CISO), as a witness. Coupang was fined 624.681 billion won by the Personal Information Protection Commission following a personal data breach incident at the end of November last year.
Although the Committee on Finance has not yet finalized its witnesses, industry insiders are paying attention to the possibility that Coupang will appear. The Korea Fair Trade Commission conducted an on-site investigation into suspicions of violating the Large Retail Business Act, but Coupang refused the investigation, citing a lack of prior notice. In addition, GS Retail and Lotte Home Shopping are scheduled to face questions regarding the re-approval system for TV home shopping at the Science and ICT Committee. There is also the possibility that witnesses will be selected from Maeil Dairies and Ourhome, where worker fatalities occurred, and Starbucks Korea, which sparked controversy with its "Tank Day" marketing campaign.
Concerns are raised in the industry that the audit may focus on criticizing corporate executives rather than formulating policy or institutional alternatives. It is argued that answers from company representatives will be limited due to partisan disputes between ruling and opposition parties and competition for attention, making it difficult to lead to substantive institutional improvements or follow-up discussions.
In fact, during last year's Committee on Finance audit, Kim Byeong-ju (Chairman) faced continued criticism over suspicions of "fleecing" investors and MBK Partners' market influence, rather than questions about solutions to the Homeplus crisis. Coupang representatives who appeared before the Committee on Trade, Industry, Energy and SMEs also answered that they were implementing relevant programs to improve settlement methods, but continuously received criticism regarding abusive management practices.
An industry official said, "The reason the atmosphere of the National Assembly audit repeats itself every year is that it is filled with one-sided scolding and criticism of companies," adding, "It should become a venue where companies and political circles engage in constructive discussions to solve problems."
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