Tensions are rising in the retail and food sectors ahead of next month's National Assembly hearings. With major issues piling up, including the Homeplus crisis, price-fixing in the food industry, and Coupang's personal data breach, concerns are emerging within the industry that the hearings will focus on criticizing companies, as in previous years, rather than formulating institutional alternatives.
According to political circles and the retail and food sectors on the 27th, National Assembly hearings will be conducted 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 (hereinafter the Trade, Industry, Energy and SMEs Committee), the Committee on Agriculture, Food and Rural Affairs, Forestry and Fisheries (hereinafter the Agriculture, Food and Fisheries Committee), and the Committee on Finance (hereinafter the Finance Committee).
The Trade, Industry, Energy and SMEs Committee plans to summon Kim Byung-ju, Chairman of MBK Partners, as a witness during its National Assembly hearing 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 Agriculture, Food and Fisheries Committee has summoned Chong Yong-sik, Vice President of CJ CheilJedang, Lee Un-ik, CEO of Samyang Foods, and Park Yun-gi, CEO of Lotte Chilsung, among others, as witnesses. Since CJ CheilJedang and Samyang Foods were fined by the Fair Trade Commission for price-fixing on flour manufacturing and sales, as well as starch and starch sugar prices, questions are expected regarding their related conduct and measures to prevent recurrence. As a major demand source receiving sugar supplies from sugar manufacturers, Lotte Chilsung is likely to face inquiries about the price formation structure of the domestic B2B (business-to-business) sugar market.
Issues related to Coupang are also mentioned as key points of contention in the National Assembly hearings of the Committee on Science and ICT (hereinafter the Science and ICT Committee) and the Finance Committee. The Science and ICT Committee will summon Brett Anthony Mattis, Coupang's CISO (Chief Information Security Officer), as a witness. In late November last year, Coupang was fined 624.681 billion won by the Personal Information Protection Commission following a personal data breach incident.
Although the Finance Committee has not yet finalized its witnesses, the industry is paying attention to the possibility of Coupang's appearance. The Korea Fair Trade Commission launched an on-site investigation regarding suspicions of violating the "Large-Scale Retail Business Act," but Coupang refused the investigation, citing that it had not received prior notice. In addition, GS Retail and Lotte Home Shopping are scheduled to face questions about the TV home shopping re-approval system at the Science and ICT Committee. There is also a possibility that workers' death accidents at Maeil Dairies and Ourhome, as well as the marketing controversy involving Starbucks Korea, could lead to their adoption as witnesses.
Concerns are being raised within the industry that the National Assembly hearings may focus on criticizing corporate executives rather than formulating policy or institutional alternatives. It is argued that due to escalating political disputes between ruling and opposition parties and competition for attention among lawmakers, responses from company officials will be limited, making it difficult to lead to substantive institutional improvements or follow-up discussions.
In fact, during last year's Finance Committee National Assembly hearing, Kim Byeong-ju (Chairman) faced continued criticism surrounding suspicions of "quick profit-taking" and MBK Partners' market impact, rather than questions about solutions to the Homeplus crisis. The Coupang side, which appeared at the Trade, Industry, Energy and SMEs Committee hearing, answered that it was implementing related programs to improve settlement methods, but continuously received criticism regarding abusive management practices.
An industry official said, "The reason the atmosphere of National Assembly hearings repeats is because one-sided scolding and criticism of companies are rampant," adding, "It should become a venue where companies and political circles engage in constructive discussions to solve problems."
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