It was confirmed on the 19th that Drink Store, located in Hyundai Department Store, is a company that has entered into a specific purchase (special purchase) contract with the department store amid ongoing investigations by the prosecution regarding harmful pesticide residue detected in Oolong tea. The special purchase contract is not a simple rental contract, but a structure in which the department store purchases the products.
According to industry sources, Drink Store, a cafe located in Hyundai Department Store, was reported to the prosecution by the Ministry of Food and Drug Safety for allegedly preparing and selling Oolong tea that contained pesticide residues exceeding the standard levels. Consequently, the Seoul Western District Prosecutors' Office's Food and Drug Crime Investigation Division (Director General Park Hyang-cheol) has been investigating individual A, the representative of Drink Store, since the 24th of last month on suspicion of violating the Special Act on Imported Food Safety Control and the Food Sanitation Act. Hyundai Department Store has recently made an official apology and promised customer refunds and measures to prevent recurrence.
According to the Food and Drug Administration's investigation results, Drink Store located in Hyundai Department Store's Trade Center and Middle East branch sold illegally imported tea products for about five months from April to September last year. Pesticide residues, specifically dinotefuran, were detected in Oolong tea exceeding the standard level. This substance can cause vomiting, diarrhea, abdominal pain, and dizziness. Drink Store sold approximately 15,890 cups of tea and beverages during this period, amounting to 80 million won in sales.
Some in the legal community noted that since this incident occurred in a store operated under a special purchase contract rather than a simple rental store (consignment sales), it would be difficult for the department store to avoid legal responsibility. Given that Hyundai Department Store brought in this tea through the special purchase method, there is a possibility that they could be viewed as a seller rather than just a landlord (space provider).
The special purchase contract at the department store does not operate under a structure where the brands independently sell their products. Instead, the department store directly purchases products and sells them to consumers. While direct purchasing involves a distributor buying and holding products in advance before selling, special purchase allows the distributor to purchase products from suppliers after they have sold them, reducing inventory burden.
According to the distribution industry, special purchase contracts are favored by department stores because, unlike rental contracts governed by rental protection laws, entry and exit are free, and there is no responsibility for inventory management. However, even though it is a post-purchase, it is a structure that requires the department store to assume responsibility as a seller since they buy and sell the products.
Consequently, the Oolong tea sold at Drink Store that tested positive for pesticide could legally be considered as directly sold by Hyundai Department Store. This is because the department store approves the menu of special purchase stores and must assign code numbers after the headquarters buyers review them before sales can take place.
If Hyundai Department Store neglected food safety inspections or continued sales despite being aware of the problem, there is a possibility that they could be transitioned to suspect status during the investigation process.
A legal expert, who requested anonymity, said, "There is a high probability that they will be transitioned to suspect status, as the special purchase method indicates that Hyundai Department Store directly bought and sold the products, making their legal responsibility as a seller clear."
In response, a representative of Hyundai Department Store stated, "We immediately suspended operations at the store in question right after the Ministry of Food and Drug Safety's announcement to alleviate customer concerns" and added, "As a proactive customer protection measure, we plan to not only offer refunds to customers who purchased products during that period but also take all necessary actions." Another representative noted, "It is difficult to predict the outcome, as the prosecution has just begun investigations into Drink Store."