Baek Jong-won Meets Sohn Seok-hee, Speaks Out on Controversy... "The 30 Million Won Monthly Sales Recording Was Edited"

MBC Son Seok-hee's Questions, First Guest
"I was asked to come out regarding self-employment, so I came out"

"The detailed story requires releasing the entire transcript, but since this is a matter reported to the Fair Trade Commission, it seems it will be disclosed later."

Baek Jong-won, CEO of The Born Korea, spoke out regarding the recent controversy over false and exaggerated sales figures related to the franchise business including Yeondon Bolkatsu. This was through MBC's 'Son Seok-hee's Questions,' which aired for the first time on the 13th.

Baek Jong-won (left) and Sohn Suk-hee.
[Photo by MBC]

Before the main talk began, CEO Baek said, "I was reluctant to appear on a talk program. I don't really like them. When you do them, it often turns into a situation where you have to keep saying how great you are, so I was going to avoid it, but since the economy is tough these days and they asked me to come out regarding self-employment, I decided to appear."

Former JTBC President Son started the questions by asking about the conflict between The Born Korea and the franchisees of 'Yeondon Bolkatsu.' He asked why the number of 'Yeondon Bolkatsu' franchise stores has recently decreased sharply, saying, "I have to ask from the franchisees' perspective."

Regarding the franchisees' claim that "the headquarters promised a monthly sales target of 30 million won," CEO Baek said, "You mentioned the transcript, but we suggested providing the entire transcript from start to finish because the reason why that (monthly sales of 30 million won) was mentioned appears earlier," explaining that only unfavorable parts of the transcript were selectively released.

He continued, "The franchise law states that if you advertise falsely, you get seriously penalized, and it is mandatory to disclose the highest and lowest sales for one year," explaining the context of the omitted parts of the transcript. CEO Baek said, "I'm not trying to evade responsibility, but it seems wrong to take a statement made by a sales employee to boost sales and use it as a pretext to demand compensation as if it was a company-wide promise. You cannot guarantee sales in a franchise business," and added that the full transcript will be released later.

[Photo by MBC, captured from 'Son Seok-hee's Questions']

In response to former President Son's rebuttal, "From the franchisees' perspective, complaints like 'We trusted Baek Jong-won, so what if he doesn't come?' can arise," CEO Baek said, "That concern is understandable," but countered, "If you buy ramen with my face on it, will it taste exactly the same? Can that be considered irresponsible?"

He reiterated, "Franchise business is like a diamond shape; it cannot fit the majority of franchisees," and said, "I am thinking about moral responsibility, but if they say 'We trusted you, so compensate us,' that is like telling everyone to die."

Previously, a truth dispute arose between some franchisees and the headquarters of Yeondon Bolkatsu, a brand under The Born Korea operated by CEO Baek Jong-won. While franchisees claim that the headquarters exaggerated expected sales during the recruitment process, The Born Korea completely denies the allegations.

Meanwhile, former President Son returned to MBC after 11 years by appearing on the five-part special current affairs program 'Son Seok-hee's Questions.' This is his first time hosting an MBC program since the radio show 'Son Seok-hee's Focus,' which ended in 2013. The five-part 'Son Seok-hee's Questions' airs every Saturday afternoon. However, it will not be broadcast during the Paris Olympics period.