On the 14th, it was learned that the Korea Fair Trade Commission launched an on-site probe into allegations that Dr.Chung's Food, maker of the soy milk "Vegemil," forced inventory onto its distributors.
According to industry sources that day, the Korea Fair Trade Commission (FTC) sent a Researcher to the headquarters of Dr.Chung's Food in Cheongju, North Chungcheong, on the 8th to 11th to secure materials to verify suspected violations of the Act on Fairness in Agency Transactions.
The Korea Fair Trade Commission (FTC) is said to be examining whether Dr.Chung's Food forced distributors nationwide to buy products to boost sales. The agency law prohibits suppliers such as Dr.Chung's Food from abusing their transactional position to make distributors purchase goods they do not intend to buy.
In 2014, Dr.Chung's Food set quotas for each product and then forced the responsible distributors to purchase more than their quotas, for which it was fined a penalty surcharge of 235 million won.