Industry Committee Summons Chung Yongjin and Park Daejun as Witnesses
Kim Kiho, Cho Manho, and Lee Jucheol Also Included
Science Committee Requests Attendance of Kim Byungjoo, Chairman of MBK
Companies Involved in Industrial Accidents and L
After the inauguration of the Lee Jaemyung administration next month, the first National Assembly audit will see a series of major business leaders called as witnesses, including Chung Yongjin, Chairman of Shinsegae Group; Park Daejun, CEO of Coupang; Cho Manho, CEO of Musinsa; and Kim Kiho, CEO of Asung Daiso.
According to political sources and industry officials on the 25th, the National Assembly’s Industry, Trade, Energy, and Small and Medium Venture Business Committee has approved an audit plan that designates these corporate leaders as witnesses for the audit beginning on October 13.
The committee plans to summon Chairman Chung on October 24 for a comprehensive audit targeting the Ministry of Trade, Industry and Energy, to examine the state of domestic consumer data protection on online platforms. This move comes after the Fair Trade Commission approved the merger between Shinsegae and China’s Alibaba Group on September 18, on the condition that domestic consumer data would be blocked. The committee is expected to check the related operational plans.
Lee Cheolgyu, chairman of the National Assembly Industry, Trade, Energy, and Venture Businesses Committee, is opening the full committee meeting at the National Assembly on the 25th. Photo by Yonhap News
CEO Park Daejun will be questioned on Coupang’s settlement methods, fee deduction structure, and advertising operations. Park has also been selected as a witness for the Science, ICT, Broadcasting, and Communications Committee audit, alongside Joo Sungwon, Head of Coupang Commerce Strategy.
This session will address issues such as forced advertising and the problematic nature of targeted advertising. Forced advertising refers to methods that expose users to ads against their will online, excessively inducing app launches or installations. The committee also plans to point out provocative or discriminatory content in targeted ads aimed at specific genders or age groups. Zhang Rui, CEO of Aliexpress Korea, has also been requested to appear as a witness to address these same issues.
In the fashion and beauty sector, CEO Cho Manho and Lee Jucheol, CEO of W Concept, will be summoned as witnesses to examine fairness issues, such as commission structures arising in transactions between platforms and sellers.
Additionally, Kim Kiho, CEO of Asung Daiso, will be questioned regarding allegations of unfair practices that have damaged the industrial ecosystem in dealings with suppliers. To address issues such as unfair practices by delivery apps, the shifting of costs onto small business owners, and monopolistic practices in the platform industry, Kim Beomseok, CEO of Woowa Brothers, is also scheduled to be summoned as a witness.
Members of the Homeplus Branch of the Mart Industry Union, affiliated with the National Service Industry Labor Union Federation, are holding a rally in front of D Tower, where MBK Partners' office is located in Jongno-gu, Seoul, shouting slogans demanding "MBK take responsibility for Homeplus corporate rehabilitation." Photo by Yonhap News Agency
In the Science, ICT, Broadcasting, and Communications Committee, attention is focused on whether Kim Byungjoo, Chairman of private equity fund MBK Partners, will appear as a witness in connection with the Homeplus incident, which became controversial after the company filed for corporate rehabilitation in March. Kim will be summoned alongside Kim Kwangil, CEO of MBK, to address recent issues such as the Lotte Card hacking incident, the sale of certain Homeplus branches, and problems related to the reauthorization of D'Live.
With public interest in Homeplus’s rehabilitation process rising and calls for major shareholder accountability growing, MBK has announced an additional social responsibility plan: before the approval of the M&A, MBK will use a portion of its future operating profits to donate up to 200 billion won to Homeplus to ease the financial burden on the acquirer. This is in addition to the existing 300 billion won in financial support provided as a joint loan guarantee. If the additional 200 billion won is donated, the company claims this will be the largest amount ever injected by a major shareholder for corporate normalization in cases of rehabilitation or workout.
In the Legislation and Judiciary Committee, Judge Kim Intaek of the Changwon District Court, who is presiding over the case involving allegations of nomination interference by Yoon Sukyeol and Kim Keonhee, has been requested as a witness, along with Kim Younghun and Lee Wanhee, co-CEOs of HDC Shilla Duty Free, and the head of the promotions team. The purpose is to question Judge Kim about allegations of receiving luxury goods.
Previously, in July, the Korea Customs Service referred Hwang, the head of the promotions team at HDC Shilla Duty Free, to the Seoul Central District Prosecutors’ Office on smuggling charges under the Customs Act. In April, Judge Kim’s passport photo, stored on a mobile phone, was shown to a duty-free shop employee, after which luxury brand clothing and other items were purchased under Judge Kim’s name at an 80% discount and allegedly not reported to customs.
Additionally, considering the current administration’s focus on improving worker safety and working conditions, there is a possibility that key figures from companies such as SPC and Golden Blue, which have been embroiled in related controversies, may also be summoned as witnesses.
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