[2025 National Assembly Audit] Kyochon Chicken Faces Dual Criticism Over Shrinkflation and Supply Shortages

Reducing Weight and Changing Cuts While Keeping Prices Unchanged
Franchisees Raise Allegations of Retaliation

Kyochon F&B, the operator of Kyochon Chicken, faced intense criticism from both ruling and opposition party lawmakers during this year's National Assembly audit over issues of "shrinkflation" (selling reduced quantities at the same price) and supply shortages of raw materials. The company's management was called into question amid overlapping allegations of deceiving consumers, harming franchisees, and suspected retaliatory actions following a Fair Trade Commission report.

Jonghwa Song, CEO of Kyochon F&B

"Reducing Weight While Keeping Prices the Same"… Inadequate Consumer Notification Controversy

On October 14, during the National Assembly's Political Affairs Committee audit, Assemblyman Lee Heonseung of the People Power Party questioned Jonghwa Song, CEO of Kyochon F&B, stating, "Kyochon Chicken reduced the weight of its boneless chicken from 700g to 500g last month, but kept the price unchanged. This is a textbook case of shrinkflation."

Assemblyman Lee continued, "We must ask whether consumers were sufficiently informed about the reduction in weight. Simply posting a notice on the website is not enough, and the change was not reflected on delivery apps, which are the main purchase channels," criticizing the company's approach.

He added, "Kyochon was the first in the industry to introduce delivery fees in 2018, ushering in the '20,000 won chicken era.' Given the controversy at that time, this decision should have been made more carefully. Even now, the company must clearly notify consumers."

In response, CEO Song stated, "We did provide notice on our website, but I acknowledge that it was insufficient. We will strengthen our notifications across all channels, including delivery apps, as quickly as possible."

Assemblyman Lee also pointed out, "Chicken is a staple food closely tied to people's daily lives and directly affects consumer prices. The Fair Trade Commission should not take a passive stance simply because this issue does not fall directly under its jurisdiction." In response, Chairman Joo Byungki of the Fair Trade Commission said, "The issue of chicken weight and pricing affects consumer prices, so we will review possible institutional improvements."

"No Supply and Outside Purchasing Prohibited"… Franchisee Damages and Retaliation Allegations

On the same day, Assemblyman Park Chandae of the Democratic Party of Korea raised concerns about Kyochon's raw material supply shortages. He stated, "Kyochon was reported to the Fair Trade Commission in 2019 and 2020 due to supply disruptions, but the situation has not improved. Recently, the supply rate has dropped to the 30% range."

Assemblyman Park criticized, "By mixing chicken breast with thigh meat to lower costs and reducing overall weight, Kyochon has ultimately shifted the burden of supply shortages onto consumers. The headquarters has failed to supply raw materials on time, yet prohibits franchisees from making outside purchases under the pretext of 'brand protection.'"

He further alleged, "When some franchisees reported the headquarters to the Fair Trade Commission, Kyochon refused to renew their contracts within two months, which is effectively a retaliatory action." In response, Chairman Joo stated, "The case is currently under investigation, and if unfair practices or damages to franchisees are confirmed, we will take strict action in accordance with the law."

CEO Song explained, "We recognize that repeated supply instability is a structural issue and have been reviewing stabilization measures such as diversifying supply chains since the beginning of this year." He added, "Allowing outside purchases could harm the brand's competitiveness, so it is not an easy decision to make, but we will do our utmost to ensure franchisees can continue their businesses."