[The Editors' Verdict] Concerns Over 'K-Food Globalization Setback' Are Unfounded

Prosecutors Detain SPC Group Chairman Huh Young-in
Concerns Over 'K-Bakery' Losing Momentum
Global Companies Prioritize Social Responsibility Over Store Count

A few years ago, during a business trip to Paris, France, I visited a Paris Baguette store. It was the first store established by SPC Group in 2014 in France, the birthplace of the baguette (Paris Baguette Ch?telet branch). I was impressed by the queue waiting outside the store in the winter rain to buy bread. I don't remember the taste of the bread because I felt bitter after hearing the company's explanation that they differentiated the local signage to avoid revealing it was a Korean brand.

However, the atmosphere has changed in recent years. Thanks to the global popularity of K-content such as BTS and the movie "Parasite," Korean food featured in these contents has captured global tastes. Overseas Paris Baguette stores now operate proudly under Korean signage as representatives of "K-Bakery." SPC currently operates about 560 Paris Baguette stores in 10 countries.

There are many concerns that SPC's global business will face setbacks after SPC Group Chairman Huh Young-in was arrested on the 5th on charges of forcing Paris Baguette bakers to leave the Korean Confederation of Trade Unions (KCTU). In particular, SPC recently signed a memorandum of understanding (MOU) with the local coffee company Pascucci to enter the Italian market with Paris Baguette. Chairman Huh's arrest could also hinder Paris Baguette's entry into Italy.

Earlier, Chairman Huh was urgently detained after refusing to appear for four prosecution summonses. At that time, SPC cited Chairman Huh's "busy schedule" related to the MOU signing with Pascucci as the reason for his absence. Chairman Huh also missed a National Assembly audit last year, citing overseas business trips. The National Assembly summoned him as a witness to hold him accountable for a series of fatal accidents at SPC affiliates. However, even then, "globalization of K-food" and "SPC Group's global business expansion" were reasons for refusing to appear as a witness.

In 2022, when public criticism grew after a 20-something employee died in a crushing accident at SPL, an SPC affiliate that makes Paris Baguette bread, Chairman Huh appeared publicly and bowed his head. However, at a hearing on industrial accidents held by the National Assembly's Environment and Labor Committee in December last year, he acknowledged moral responsibility for the deaths of SPC affiliate employees but denied legal responsibility for safety accidents, citing the "principle of responsible management by each affiliate."

SPC has more than 6,000 domestic stores including Paris Baguette, Baskin Robbins, and Dunkin' Donuts. Chairman Huh, who has been busy with overseas business, shows a contradictory attitude by neglecting issues at domestic business sites.

At last year's hearing, when Rep. Woo Won-shik of the Democratic Party asked, "Have you ever instructed or been involved in union withdrawal or unfair labor practices against bakers?" Chairman Huh replied, "Not at all." However, the prosecution views Chairman Huh as the mastermind behind unfair labor practices, such as disadvantaging union members affiliated with the KCTU in promotions and supporting the formation of company-friendly unions. SPC has frequently experienced industrial accidents, including fatal ones, at its affiliates, and if the prosecution's investigation is accurate, these frequent industrial accidents are not unrelated to such labor attitudes.

The standard for a global company is not the number of overseas stores but social responsibility first. Concerns that SPC's overseas business will be disrupted due to Chairman Huh's arrest, harming national competitiveness, are unfounded.