[2025 National Audit] Hyundai Department Store CEO Jiyoung Jung Apologizes for "Pesticide Oolong Tea Sale"... Reviewing Sales System

Sale of Oolong Tea Containing Pesticide Last Year
Unfair Structure of Special Purchase Contracts Criticized
CEO Jiyoung Jung Promises "Corrective Action on Sales Structure"

Jiyoung Jung, CEO of Hyundai Department Store, apologized regarding the sale of "pesticide oolong tea" that occurred in April last year, stating, "I am sorry that such an incident happened at a department store that values customer trust."

Jiyoung Jung, CEO of Hyundai Department Store, is attending the Welfare Committee's national audit held on the afternoon of the 21st and answering questions from lawmakers. National Assembly Internet Proceedings System.

At the National Assembly Health and Welfare Committee's national audit held on the 21st, Assemblyman Park Jumin of the Democratic Party of Korea pointed out that it took three days for an apology after the pesticide oolong tea was sold, criticizing the lack of immediate action. Jung responded, "We did not take prompt action."

Jung further explained, "After confirming the news, it took about two days to prepare a refund system for customers," adding, "Since consumers trust the department store when making purchases, we had no intention of evading responsibility."

Hyundai Department Store is suspected of selling oolong tea containing pesticide ingredients at "Drink Store," a Taiwanese milk tea specialty shop located in the Bucheon Jungdong branch, from April to September last year.

According to an investigation by the Ministry of Food and Drug Safety, the store in question illegally brought in Taiwanese oolong tea bags without following official import procedures, and the tea was found to contain "dinotefuran," a pesticide ingredient. Dinotefuran is a harmful substance that can cause vomiting, abdominal pain, and diarrhea in cases of acute poisoning. Approximately 15,890 cups of the product were sold.

On this day, Assemblywoman Han Jia of the People Power Party focused her questions on Hyundai Department Store allegedly evading responsibility for stores that entered under a special purchase contract. A special purchase contract is a transaction method in which a distributor brings in goods on credit under the condition of sharing profits after sales, and can return unsold products (inventory).

Han pointed out, "When a store enters under a special purchase contract, the actual final responsibility essentially lies with Hyundai Department Store, but it has not faced any sanctions. This is a representative example of an unfair contract, as Hyundai Department Store took ownership of the profits after the sale of the pesticide tea, while all responsibility was placed on the store."

She added, "The responsibility falls on the tenant brand, and if profits decline, the store is inevitably forced out. This is a typical example of an unfair contract."

Han also raised an issue with the fact that Hyundai Department Store's proportion of special purchase contracts is higher than that of the other top three department stores. The average proportion of special purchase transactions at Hyundai Department Store over the past four years was 64.7%, compared to 63.4% at Lotte Department Store and 57.3% at Shinsegae Department Store. Han urged, "Hyundai Department Store must go beyond a simple apology and take corrective action regarding responsibility for food sold and its management systems," adding, "A fundamental overhaul of the chronic unfair special purchase contract system is necessary."

In response, Jung stated, "The proportion of special purchase contracts is around 60%," and added, "We will take corrective action so that we can serve as a model for other companies."