Yoon Hong-geun Loses Final Appeal in Damages Lawsuit Against Former Franchise Owner Who Reported ‘BBQ Gapjil’ Allegations

Supreme Court: "Difficult to Consider as Defamation by False Facts"

Genesis BBQ Group Chairman Yoon Hong-geun, a chicken franchise owner, ultimately lost a damages lawsuit filed against a former franchisee who reported his alleged abuse of power to the media.

The Supreme Court's 2nd Division (Presiding Justice Cheon Dae-yeop) on the 29th upheld the lower court's ruling that dismissed the damages claim filed by BBQ and Chairman Yoon against former franchisee A and franchise employee B.

In November 2017, A reported to a broadcasting company that he had been subjected to abuse of power by Chairman Yoon and the BBQ headquarters. The broadcaster reported that in May of the same year, Chairman Yoon visited A's franchise and attempted to enter the kitchen but was stopped, after which he allegedly threatened to close the franchise and used abusive language and verbal threats.

In response, Chairman Yoon filed a damages lawsuit claiming defamation. A also filed a counterclaim, stating that he suffered damages due to violations of the Act on Fair Transactions in Franchise Business by BBQ and Chairman Yoon.

The first trial court ruled against the plaintiff, stating, "It is sufficiently credible that Chairman Yoon used abusive language and verbal threats or similarly harsh words toward franchisee Mr. Kim and employees." The court did not accept A's counterclaim.

The appellate court also dismissed Chairman Yoon's damages claim, stating that the interview concerned matters of public interest and it was difficult to recognize it as intended defamation. The appellate court ruled, "There is insufficient evidence to prove that the reported content was false."

The Supreme Court agreed with the lower courts' judgments. The court ruled, "It is difficult to consider the interview as constituting defamatory false statements."