The Korea Fair Trade Commission said on the 9th that it imposed a 462 million won penalty surcharge on NH Nonghyup Hanaro Mart over allegations that, for a little more than three years since 2021, it delayed providing written contracts that were supposed to be issued to suppliers and tenants.
According to a Korea Fair Trade Commission (FTC) probe, NH Nonghyup Hanaro Mart signed supply and lease contracts with 426 suppliers and tenants from January 2021 to July 2024. However, it did not provide written contracts specifying contract terms such as transaction type and transaction items. Article 6 of the Act on Fair Transactions in Large Retail Business requires large retailers to immediately provide a document bearing the signatures or seals of both parties upon concluding a contract with suppliers or tenants.
From April 2021 to January 2024, NH Nonghyup Hanaro Mart had 43 promotional workers dispatched from 10 suppliers to work at its business sites. It did not agree in advance in writing on the terms of the dispatch. As a result, the 108.2 million won in labor costs for the promotional workers who worked at NH Nonghyup Hanaro Mart were borne by the 10 suppliers. The Korea Fair Trade Commission (FTC) therefore applied a violation of Article 12 of the Act on Fair Transactions in Large Retail Business, which prohibits the use of employees of suppliers and others.
NH Nonghyup Hanaro Mart also received 300 million won from 43 suppliers from February to November 2021 as so-called new product entry fees for 187 products that had been on the market for more than six months. The Korea Fair Trade Commission (FTC) applied a violation of Article 15(1) of the Act on Fair Transactions in Large Retail Business, which prohibits large retailers from receiving economic benefits from suppliers and others without justifiable reason.
A Korea Fair Trade Commission (FTC) official said, "We will continue to focus inspections on practices that have become customary and entrenched in the distribution market," adding, "We will work to protect the rights and interests of suppliers and tenants."