'GS Retail, accused of unfair gains worth 35 billion won from subcontractors, acquitted in first trial'

GS Retail, accused of pocketing unfair profits worth 35 billion won from suppliers, was acquitted in the first trial.

GS Retail logo. [Photo by GS Retail]

On the 13th, Judge Park Byung-gon of the Seoul Central District Court Criminal Division 5 acquitted GS Retail Corporation and former GS Retail MD Division Head Kim (Executive Director), who were indicted for violating the Subcontracting Act.

Judge Park stated, "Although it is difficult to see that the companies voluntarily paid the promotional expenses, since the specific circumstances under which GS Retail received the promotional expenses are not revealed, it is hard to conclude that GS Retail forced or coerced the payment of promotional expenses."

He added, "The promotional expenses provided by the companies were used to promote the sales of triangular kimbap and convenience store lunch boxes, and GS Retail appears to have borne costs exceeding those borne by the companies," and "It is difficult to definitively say that paying the promotional expenses only benefited GS Retail and caused losses solely to the companies."

GS Retail was brought to trial on charges of illegally gaining a total of approximately 35.56 billion won from nine fresh food manufacturers producing lunch boxes and kimbap from November 2016 to April 2022, under the names of performance incentives, promotional expenses, and information provision fees.