"Regional Festival Budget Monopoly" Controversy... Theborn Korea Directly Refutes Claims of Preferential Treatment

Official Statement Issued on Various Controversies
"Claim of 550 Million Won Video Production Cost Is Not True"
"Compliance With Administrative Procedures Amid Gunsan Restaurant Industry Development Center Favoritism Allegations"
"Strong Response If Local Governments or Theborn Korea Are Harmed"

Theborn Korea, a restaurant franchise operated by CEO Jongwon Baek, has issued an official statement directly refuting recent controversies related to its regional development projects. The company addressed issues ranging from allegations of excessive video production costs for the Inje-gun festival to suspicions of preferential treatment regarding the Gunsan Restaurant Industry Development Center, indicating a strong response to these claims.

On April 30, Theborn Korea released a statement saying, "We have participated in various regional development projects to realize the social values of revitalizing local economies and supporting small business owners," adding, "We are doing our utmost to operate our business transparently and responsibly."

Jongwon Baek, CEO of Theborn Korea. Photo by Yonhap News

Currently, Theborn Korea faces allegations that it received 550 million won to produce and upload two YouTube videos for the Inje-gun festival. This amount represents 28% of the festival's total budget of 1.95 billion won and accounted for the largest portion of the festival’s preparation expenses. Although the videos were produced last year, controversy has continued as it was belatedly revealed that items previously criticized at other regional festivals?such as a ‘construction material barbecue grill’ and a ‘pesticide sprayer sauce dispenser’?were also used in Inje.

In response, Theborn Korea stated, "The media reports in question are completely untrue," explaining, "The amount spent on producing and promoting the two YouTube videos was 150 million won, while the remaining 350 million won was allocated to facility construction, space design, general expenses, and menu consulting, all of which were used for the overall operation of the festival."

The company further explained, "The videos were filmed and produced over approximately five months starting in February 2024, with a professional production team of 16 people, including producers and writers," and added, "The videos were also broadcast on the Baek Jongwon YouTube channel, which has 6.5 million subscribers. The budget was set after comprehensively considering the extended production period and the advertising impact of the channel."

Regarding the establishment of the Gunsan Restaurant Industry Development Center, Theborn Korea also denied that it received excessive benefits. The creation of the Gunsan Restaurant Industry Development Center is part of Gunsan City's urban regeneration project. Theborn Korea plans to operate the center, developing menus using local agricultural products, providing restaurant business consulting, and running restaurant business education programs. The city reportedly invested about 7 billion won in the project, but concerns were raised that support, from building design to office furnishings, might have been tailored for a specific company.

The company stated, "This project is being carried out based on the budget and land already secured by Gunsan City," and clarified, "It is not a method of providing customized benefits to a particular company."

The company added, "Gunsan City requested cooperation after referring to the successful case of our Yeosan Restaurant Industry Development Center, and throughout this process, the business has been conducted faithfully in strict compliance with laws and administrative procedures, without any preferential treatment or exceptions."

In response to criticism that Theborn Korea monopolizes regional festival budgets, the company also disclosed figures related to its regional festival contracts. Theborn Korea stated, "Since fully launching our festival business in 2023, we have secured a total of 16 regional festival contracts, with sales amounting to approximately 4.1 billion won," and clarified, "The 9.1 billion won figure mentioned by some includes not only regional festivals but also projects for revitalizing old city centers and traditional markets, restaurant start-up consulting, and educational programs for socially vulnerable groups." The company further emphasized, "According to the Ministry of Culture, Sports and Tourism, there are more than 1,170 regional festivals nationwide each year, and our contract share is only 1.2%."

The company concluded, "We will continue to prioritize coexistence with local communities and operate our business transparently and responsibly," and warned, "If unverified information or inaccurate reports cause harm to local governments or our company in the future, we will respond strongly."