On the 10th, it was reported that the Korea Fair Trade Commission launched an on-site investigation into CJ Olive Young over alleged violations of the Act on Fair Transactions in Large Franchise and Retail Business, including abuse of power against suppliers.
According to the industry that day, Researcher were sent to CJ Olive Young's headquarters in Yongsan-gu, Seoul, to conduct an on-site investigation. It is an additional investigation following April.
The Korea Fair Trade Commission (FTC) was said to be looking into whether CJ Olive Young returned goods supplied to it to suppliers without justifiable reason. It was also said to have examined whether the company unfairly received economic benefits such as money, goods, or services from suppliers. The Act on Fair Transactions in Large Franchise and Retail Business prohibits large retailers like CJ Olive Young from disadvantaging suppliers without a justifiable reason.
CJ Olive Young was also hit with a 1.896 billion won penalty surcharge by the Korea Fair Trade Commission (FTC) in 2023 for alleged violations of the Act on Fair Transactions in Large Franchise and Retail Business. At the time, under the pretext of promotions, CJ Olive Young received products from suppliers at reduced prices and then sold the remaining products at regular prices but did not restore the price to regular levels for the suppliers. After administrative litigation, the final penalty surcharge was set at 1.396 billion won.