The Fair Trade Commission has launched a probe into allegations that some bakery businesses run by heiresses of conglomerate families have received preferential treatment from those business groups’ affiliates.
Industry sources said Friday that antitrust authorities raided the head office of Bliss, owned by Jang Sun-yoon, daughter of Lotte Shopping president Shin Yong-ja, on Oct. 16 and probed transaction details.
The Korean license of the French gourmet food company Fauchon has opened 12 shops at Lotte department stores nationwide and is suspected of having paid lower commission fees for floor space.
Also under investigation are Chosun Hotel Bakery, in which the largest shareholder is Chung Yoo-kyung, Shinsegae Department Store vice president and daughter of Shinsegae owner Lee Myung-hee, and Bonabi, a caf and restaurant chain of Hotel Shilla whose president is Lee Boo-jin, the eldest daughter of Samsung owner Lee Kun-hee.
“In June, some lawmakers raised speculation that the bakery chains may have received benefits or unfair assistance from the groups’ other subsidiaries,” said an FTC official.
“The recent investigation is considered a follow-up measure after FTC chief Kim Dong-soo expressed willingness to launch a probe at the time.”
The FTC has been investigating unfair business trade among subsidiaries of larger companies and plans to announce punitive measures within the year.
Amid concern about slowing sales at smaller neighborhood bakeries, the chaebol heiresses have aggressively expanded their businesses this year.
Fauchon used to be operated by a smaller business for 15 years but the operating license was transferred to Jang in May. The monthly sales at the main branch of Lotte Department Store in central Seoul recently amounted to 1 billion won ($890,000).
Chosun Hotel Bakery, which recorded 160 million won in sales last year, has provided bread to E-Mart, the nation’s No. 1 supermarket chain of Shinsegae Group, under an exclusive contract. Bonabi also has opened a bakery chain Artisee Boulangerie at every location of Homeplus, a joint venture by U.K.-based Tesco and Samsung Group.
By Lee Ji-yoon (jylee@heraldm.com)
Industry sources said Friday that antitrust authorities raided the head office of Bliss, owned by Jang Sun-yoon, daughter of Lotte Shopping president Shin Yong-ja, on Oct. 16 and probed transaction details.
The Korean license of the French gourmet food company Fauchon has opened 12 shops at Lotte department stores nationwide and is suspected of having paid lower commission fees for floor space.
Also under investigation are Chosun Hotel Bakery, in which the largest shareholder is Chung Yoo-kyung, Shinsegae Department Store vice president and daughter of Shinsegae owner Lee Myung-hee, and Bonabi, a caf and restaurant chain of Hotel Shilla whose president is Lee Boo-jin, the eldest daughter of Samsung owner Lee Kun-hee.
“In June, some lawmakers raised speculation that the bakery chains may have received benefits or unfair assistance from the groups’ other subsidiaries,” said an FTC official.
“The recent investigation is considered a follow-up measure after FTC chief Kim Dong-soo expressed willingness to launch a probe at the time.”
The FTC has been investigating unfair business trade among subsidiaries of larger companies and plans to announce punitive measures within the year.
Amid concern about slowing sales at smaller neighborhood bakeries, the chaebol heiresses have aggressively expanded their businesses this year.
Fauchon used to be operated by a smaller business for 15 years but the operating license was transferred to Jang in May. The monthly sales at the main branch of Lotte Department Store in central Seoul recently amounted to 1 billion won ($890,000).
Chosun Hotel Bakery, which recorded 160 million won in sales last year, has provided bread to E-Mart, the nation’s No. 1 supermarket chain of Shinsegae Group, under an exclusive contract. Bonabi also has opened a bakery chain Artisee Boulangerie at every location of Homeplus, a joint venture by U.K.-based Tesco and Samsung Group.
By Lee Ji-yoon (jylee@heraldm.com)
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