Information Banner, Suspected of Misleading as Food-Grade
Caught Up in Multiple Controversies Including Paekham Quality Issues
Baek Jongwon Apologizes at First Shareholders' Meeting
The police have launched an investigation into Jaejongwon Baek, CEO of Theborn Korea, who is suspected of using cooking utensils made from industrial metal and misleading consumers into believing they were intended for food use.
On April 29, the Seocho Police Station in Seoul announced that it is investigating a complaint filed through the National Sinmungo system against CEO Baek and Theborn Korea for alleged violations of the Act on Fair Labeling and Advertising (Labeling and Advertising Act).
The complainant claims that Theborn Korea used barbecue equipment made from "STS304 surface finish NO.1," an industrial metal, at regional festivals between 2023 and 2024, and posted banners and certificates that made the equipment appear as if it were made from food-grade metal.
The banners set up by Theborn Korea at the festival cooking sites included the phrase, "Our barbecue equipment is made of stainless steel and has passed safety inspections," along with an image file of a POSCO certificate. However, the complainant argues that this is unrelated to the Ministry of Food and Drug Safety's certification for food-grade suitability.
Under the current Labeling and Advertising Act, anyone who disrupts fair trade order by making false or misleading labels or advertisements that could deceive or mislead consumers may face up to two years in prison or a fine of up to 150 million won.
The police plan to summon the complainant for questioning and then transfer the case to the Gangnam Police Station, which has jurisdiction over Theborn Korea's address.
Meanwhile, since February, Theborn Korea has faced several controversies, including quality issues with "Paekham," suspicions of violating the Farmland Act, and errors in product country-of-origin labeling. Ultimately, on April 15, Theborn Korea issued a statement titled "We Will Change Everything Now," pledging, "Beyond apologies and explanations, we will fulfill our responsibilities as a listed company and strive to regain trust with a desperate determination for innovation." The company also stated, "We will thoroughly improve the wrongdoings and shortcomings that have been intensively raised this year, and we will make sure to renew ourselves."
CEO Baek also apologized at the first shareholders' meeting on March 28, saying, "As a manager, I deeply regret not having managed more thoroughly," and added, "Taking this incident as an opportunity, we are re-examining our internal systems from the ground up."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
