Expect inquiries from Homeplus, Coupang, CJ CheilJedang, Baedal Minjok, etc.
(Seoul = Yonhap News) Reporter Jo Min-jeong and Han Joo-hong = Major pending issues in the distribution industry will be on the chopping block one after another in this year's government audit, from Homeplus' corporate rehabilitation to Coupang's supplier transactions and personal information leaks, and delivery platform operations.
According to the National Assembly and the distribution industry on the 2nd, in this year's government audit, which will be held from the 6th to the 27th, major officials from the distribution and food industry will appear as witnesses at the Political Affairs Committee, the Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, the Trade, Industry and Energy Small and Medium Venture Business Committee, and the Science, Technology, Information, Broadcasting and Communications Committee.
◇ Rehabilitation, transaction practices, personal information… A series of current issues in the distribution industry
At the general meeting on the 1st, the Political Affairs Committee decided to include Homeplus CEO Jo Joo-yeon, Coupang Vice President Joo Seong-won, and GS Retail Vice President Oh Jin-seok as witnesses.
At the Fair Trade Commission's inspection on the 12th, CEO Cho was questioned regarding the Homeplus corporate rehabilitation and whether Vice President Joo passed on the cost of 'price customized coupons' to the supplier.
Vice President Oh will receive questions regarding the GS25 delivery method.
The Homeplus situation is also being handled by the Ministry of Commerce, Industry and Energy. MBK Partners Chairman Kim Byeong-joo is scheduled to appear as a witness for the National Assembly inspection of the Ministry of SMEs and Startups on the 7th and receive questions about the emergency management stabilization fund in the rehabilitation process of Homeplus and the damage to store merchants.
As Homeplus is undergoing corporate rehabilitation procedures, the main issue is whether it can minimize damage to its partners and store owners and maintain a normal business basis.
The responsibility of MBK Partners, the largest shareholder, financial support during the rehabilitation process, and measures for suppliers and stores are also expected to be dealt with in the National Assembly inspection.
Coupang also stands before the National Assembly for excessive defense due to personal information leakage issues. Brett Mathis, Chief Information Security Officer (CISO) of Coupang, testifies regarding the personal information leak incident.
Working environment issues related to Coupang's logistics affiliates, Coupang Fulfillment Service (CFS) and Coupang Logistics Service (CLS), are also expected to be addressed in the National Assembly's inspection of the Climate, Energy, Environment, Employment and Labor Committee.
Although the witness selection process has not yet been completed, controversy surrounding the working conditions and severance pay of CFS and CLS continues, raising the possibility that relevant executives may attend.
At last year's National Assembly inspection, controversy arose over whether Kim Beom-seok, chairman of the board of directors of Coupang Inc, should attend. Chairman Kim did not appear due to his stay abroad, and the Political Affairs Committee later adopted Chairman Kim again as a witness for the comprehensive audit.
This year, it was different from last year as Chairman Kim was not included in the witness list, and Executive Vice President Joo Seong-won and CISO Brett Mattis appeared to discuss issues of transaction practices and personal information leaks.
◇ Price fixing, farmland, trade… Pay attention to food and rural issues
In the food industry, the issue of sugar and flour price fixing is expected to be a major issue.
On the 7th, the National Assembly's Agriculture, Livestock, Food, Oceans and Fisheries Committee adopted Cho Young-sik, Vice President of CJ CheilJedang [097950], Lee Un-ik, CEO of Samyang Corporation [145990], and Park Yoon-ki, CEO of Lotte Chilsung Beverage [005300], as witnesses for the government audit on the 7th. Inquiries regarding sugar price fixing are expected.
Previously, the Fair Trade Commission imposed a fine of 400 billion won on three companies, including CJ CheilJedang, Samyang Corporation, and Korea Sugar, on charges of colluding in sugar prices. Fines of close to 700 billion won were also imposed on major flour mills such as Sajo Dongawon, Daehan Flour Mills, and CJ CheilJedang on charges of price fixing of flour.
The issue of contribution to the Rural Coexistence Cooperation Fund is also expected to be addressed in the National Assembly inspection. Regarding the criticism that fund contributions were low, Hanwha Group President Lee Kang-man and POSCO President Lee Hee-geun were selected as witnesses.
The issue of complete agricultural land survey and membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is also considered a major issue for the national inspection of agricultural and marine levels.
As the agricultural community continued to protest against the government's push to conduct a comprehensive survey of farmland, the party and government announced supplementary measures on the 21st of last month, but concerns are still high in the field. People Power Party lawmaker Kang Seung-gyu decided to call one farmer as a witness for the National Assembly inspection on the 7th.
The issue of joining the CPTPP is also an issue that continues to be opposed by the agricultural and fishing industries. Kim Young-cheol, head of the National Fishermen's Federation, plans to appear as a witness at the National Assembly inspection on the 12th and express his opinions on related issues.
In addition, the issue of Nonghyup reform is expected to be addressed as a major issue.
The commissions of delivery apps such as Baedal Minjok and Coupang Eats and transaction conditions between platforms and stores are also expected to be dealt with in the National Assembly inspection.
Kim Beom-seok, CEO of Woowa Brothers, the operator of Baedal Minjok, will appear as a witness at the National Assembly’s Finance and Economic Planning Committee audit. It is expected that there will be inquiries regarding the transfer of funds to the overseas parent company.
The Starbucks 'Tank Day' controversy, which heated up the distribution industry this year, is also attracting attention as a major issue during the National Assembly inspection season, but neither Shinsegae Group Chairman Chung Yong-jin nor Starbucks officials, who apologized in relation to this, are currently included in the confirmed list of witnesses.
