[The Editors' Verdict] Baek Jongwon's Fame

Baek Jongwon, CEO of The Born Korea, Suspends Broadcasts
Admitted Responsibility for Controversies Including "Baekham"
Caution Needed Against "Sichu Nori" Internet Attacks

Recently, I received a bouquet by delivery. It was a flower called "peony" that an acquaintance had grown personally. After trimming the stems and placing them in a vase, the flowers bloomed fully within a few hours. The blossoms, as large as the palm of my hand, were lush and beautiful. However, the full bloom did not last long. After four days, all the petals had fallen, leaving a desolate and lonely scene.

The sight of Baek Jongwon, CEO of The Born Korea, bowing his head and announcing a suspension of his broadcasts on his YouTube channel on May 6, after being embroiled in various controversies, was no different. The confidence he displayed when scolding small business owners on the variety show "Baek Jongwon's Alley Restaurant" was nowhere to be found, and he appeared withered, much like fallen petals.

Over the past decade, CEO Baek, who became well-known as a TV personality, is now facing the harsh side of fame. Earlier this year, after suspicions arose that "Baekham," a product sold by The Born Korea, was priced higher than competing products, further allegations emerged, including false labeling of product origin, employee sexual harassment, and abuse of power on broadcasts. In early May, the Gangnam Police Station in Seoul booked CEO Baek for investigation on charges of falsely labeling the origin of the company's ready-to-eat meals. The Born Korea is also under investigation by the Fair Trade Commission for allegedly providing false projected sales figures to franchisees of "Yeondon Bowl Katsu."

As CEO Baek acknowledged on his YouTube channel, there is a significant degree of self-inflicted responsibility in the recent controversies. The first major backlash against The Born Korea came in November of last year, just before its planned listing on the domestic stock market. Franchisees of the brand "Yeondon Bowl Katsu" raised suspicions that The Born Korea had provided them with false sales information.

Yeondon gained immense popularity after appearing on "Alley Restaurant" in 2018, to the extent that people lined up before opening hours. When it moved to "The Born Hotel" in Jeju, operated by The Born Korea, CEO Baek was criticized for allegedly pursuing personal gain through his TV appearances. Nevertheless, The Born Korea incorporated Yeondon as a franchise brand, and during this process, some franchisees claimed they suffered losses due to poor sales.

The franchise business model involves the headquarters supplying recipes and ingredients that guarantee a certain taste to franchisees, while collecting royalties and ingredient costs. As the number of franchises increases, the headquarters' revenue grows?a win-win model. However, at that time, instead of meeting with the franchisees, CEO Baek appeared directly on his YouTube channel to refute the allegations, saying "it is not true," which only intensified the conflict between headquarters and franchisees.

Furthermore, after the success of the "Yesan Market Revitalization Project" in Chungnam in 2023, criticism arose over The Born Korea receiving event budgets from other local governments such as Gunsan in Jeonbuk and Inje in Gangwon. This is especially problematic because pursuing personal interests through broadcasting, where fairness and trust are paramount, deserves criticism.

However, it is important to note that the various controversies surrounding CEO Baek are also part of the so-called "sichu nori" phenomenon. "Sichu nori" is a type of internet culture where people dig up a specific individual's past actions and file complaints and reports, much like drilling for oil. On DC Inside's "Baek Jongwon's Alley Restaurant Gallery," there have been numerous posts this year certifying that people have filed complaints about CEO Baek and The Born Korea's alleged misconduct to the National Petition Portal. They claim to have submitted evidence of legal violations found in Baek's broadcast videos and other materials to administrative agencies.

Food and beverage (F&B) franchise companies have long struggled to establish themselves in the domestic stock market, to the extent that it is called the "IPO tragedy." This is because the interests of shareholders, who seek profits for headquarters, often conflict with those of franchisees, and risks related to food safety and franchise management can lead to consumer boycotts, causing corporate value to plummet. Currently, only two companies?Kyochon and The Born Korea?are listed on the domestic stock exchange. There is concern that a frog may be killed by a stone thrown in jest.