"Insufficient Evidence" Leads to Prosecution's Non-Indictment... Intensifying 'Lens War' Between Optometrists and Platform

Optometrists Association Appeals Against Wink Company
Association: "Online Pickup Structure Is Essentially Online Sales"
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Wink Company: "We Transact With Opticians, Not Consumers"

The conflict between the Korea Optometrists Association and color lens manufacturer and distributor Wink Company is intensifying. After the prosecution decided not to indict Wink Company due to insufficient evidence following a complaint from the association regarding alleged online sales, the association has filed an appeal and continues to pursue legal action.

Wink Hafakristin One and Only Kristin One Day Gray Lens Advertisement. Screenshot from Wink homepage.

According to the investment banking (IB) industry and legal circles on July 3, the prosecution last month decided not to indict Wink Company on charges of inducing or brokering e-commerce sales, citing "insufficient evidence." However, the association, as the complainant, filed an appeal on June 25 and plans to submit an additional statement and supporting materials within this month.

The association argued that Wink Company merely disguised its business as a platform, while in reality exploiting laws that prohibit online sales. The association also claims that the prosecution acknowledged issues with Wink's business model. According to the association's public statement, "The prosecution's non-indictment decision pointed out that handing over products in sealed envelopes without an eye exam is problematic," and explained, "The prosecution viewed this as an act limited to certain optician shops, which is why they decided not to indict."

An association representative stated, "Through an investigation of approximately 60 optician shops partnered with Wink, we provided evidence that proves illegal activity," and added, "It appears the authorities made a formal judgment based solely on the contract presented by Wink Company." The representative emphasized, "The truth about whether opticians are the actual sellers must be clarified."

Photo by Wink Company

The association further explained, "The online pickup structure, operated under the guise of platform-based innovation, is in effect no different from online sales," adding, "Consumers select the prescription, product, and pickup location entirely online, while the optician shop merely acts as a delivery point." The association pointed out, "Although optician shops are not the actual sellers, all legal responsibility falls on the opticians."

They also highlighted that in the case of online pickup sales, if any side effects from lens use or other issues arise, responsibility for the sale can be evaded by both the optician shop and the pickup service provider, leaving consumers to bear the full consequences.

The association noted that two similar contact lens online pickup companies have been indicted by the prosecution since December last year, which they argue demonstrates the illegality of such practices. O-Lens, the leading optician franchise in Korea, discontinued a similar in-store reservation service after guidance from the association. In contrast, other major franchises are reportedly still offering similar services.

On the other hand, a representative from Wink Company's parent company, PPB Studios, refuted the complainant's claims, stating, "We never transact directly with consumers. When a consumer makes a reservation through the app, the optician accepts and places an order with us, so we only transact with opticians." The representative also said that the prosecution's non-indictment opinion was very specific, and since there is nothing illegal about their business operations, they do not expect the complainant's appeal to be accepted.

Wink Company handles more than 300 types of cosmetic color contact lens products with various sizes, materials, and colors through its online pickup sales site. Of these, about 230 are their own products. Consumers freely select their desired products through the application and designate an optician shop for purchase. Wink Company then sends the products to the partner optician shop, where the consumer picks them up. The company's performance is rapidly increasing. In 2023, Wink Company recorded sales of 16,248,180,000 won and operating profit of 1,144,090,000 won. Last year, sales reached 26,562,800,000 won and operating profit was 166,010,000 won.

The largest shareholder of PPB Studios, Wink Company's parent company, is venture capital firm Vision Equity Partners, which held a 42.97% stake as of last year. JOY WARRIOR LIMITED holds 24.89%, CEO Hong Jaebeom holds 14.29%, and Atinum Global Brand New Technology Business Investment Association No.1 holds 3.00%, among others.