Since 2017, Saemaeul Sikdang franchise owners
have shared information through a private online cafe
The Born Korea explains: "Employee grievance board"
CEO Baek Jong-won of The Born Korea (left) and Saemaeul Sikdang franchise owners sharing information on a private online cafe screen. Photo by Kang Jin-hyung, Yonhap News TV
Baek Jong-won, the CEO of The Born Korea, has been embroiled in controversies related to the company's products and operations. Recently, allegations have surfaced that The Born Korea operated a 'staff blacklist' within a private online cafe for Saemaeul Sikdang, a restaurant chain run by the company. The Born Korea explained that the list was created at the request of franchise owners to share employee grievances, but if the list was indeed intended to obstruct employment, it could lead to criminal charges, intensifying the controversy.
According to a report by Yonhap News TV on the 18th, The Born Korea has been running a private online cafe since 2017 where Saemaeul Sikdang franchise owners share information. Franchise owners reportedly used this cafe to check instructions from headquarters. A 'staff blacklist' board appeared in this cafe about three years ago, and evidence shows that actual blacklist posts were shared there.
In an interview with the media, The Born Korea stated, "The board for sharing employee grievances was created at the request of a franchise owner but was not actively used." This indirectly acknowledges that headquarters allowed the creation of the list. According to the Labor Standards Act, creating and using a list with the intent to obstruct a worker's employment is illegal. Violations can result in imprisonment for up to five years or a fine of up to 50 million won. If the list was indeed intended to obstruct employment, criminal prosecution is possible.
Since early this year, Baek and The Born Korea have been continuously involved in controversies. Ahead of the Lunar New Year holiday, the 'Baek Ham Gift Set' sold at a discount was priced excessively higher than the industry’s top product, sparking accusations of aggressive marketing tactics. A YouTube channel also showed cooking next to liquefied petroleum gas (LPG) tanks, which led to a fine.
Additionally, the fruit beer 'Gamgyul Oreum' released by The Born Korea's franchise Yeondon Bolkatsu faced issues due to insufficient content. It was also revealed that The Born Korea used a vinyl greenhouse near the Baekseok factory for unauthorized purposes, resulting in a demolition order from administrative authorities. The Yesan Police Station has filed complaints against The Born Korea and Yedeok Academy for violations of the Farmland Act, Mountainous Area Management Act, and Building Act, and investigations are underway. Furthermore, Baek was criminally charged for violating the Origin Labeling Act after it was discovered that products like 'Baek Jong-won's Baekseok Doenjang' and 'Hanshin Pocha Nakji Bokkeum' were falsely promoted as domestic products despite being made with imported ingredients.
In response to the series of controversies, on the 13th, Baek issued an apology on The Born Korea’s website, stating, "I deeply apologize for causing concern to many people due to issues related to The Born Korea and feel a strong sense of responsibility. I promise to promptly improve all matters, including legal issues," bowing his head in apology.
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