
The National Assembly pointed out that GS Retail caused losses to consumers and franchise owners by receiving products at a higher price through unnecessary intermediate vendors.
AI-generated summary
It was pointed out that GS Retail purchased products through unnecessary intermediate vendors, resulting in higher consumer prices and lower margins for franchisees.
The Political Affairs Committee's National Assembly audit raises suspicions of preferential treatment by battery supply vendors... GS Retail “internal investigation underway”
(Seoul = Yonhap News) Reporter Jeong Soo-yeon = It has been pointed out that GS Retail is inserting an unnecessary middleman vendor to deliver products at a higher price, and that consumers and franchise owners are suffering losses as a result.
At the National Assembly's political affairs committee audit on the 12th, Rep. Han Min-soo of the Democratic Party of Korea said, "Consumer prices are rising and franchise store owners' margins are falling due to unnecessary vendor involvement in the delivery process." He added, "Isn't there virtually no control mechanism?"
According to data including transactions between GS Retail and Hanbyul, a vendor company, disclosed by Rep. Han, Hanbyul has been consulting on opening a store with GS Retail since October 2020, before the establishment of the corporation.
After establishing the corporation in January 2021, it was registered as a partner in February of that year.
Unlike its competitor, CU, which purchases batteries directly, GS Retail purchased batteries through this company, and GS Retail's supply price was 120% higher than CU's.
Hanbyul supplied products to GS Retail from 2022 until recently, generating sales of 17 billion won. This company has three employees and last year’s sales were 7.4 billion won.
One lawmaker also took issue with the fact that this company does not hold any inventory assets.
Typically, vendors must purchase products in advance and then deliver them to the distribution center, but this company had no inventory in its financial statements.
Suspicions were also raised that GS Retail had entrusted the delivery of products to a so-called 'transfer company' that had previously worked at GS Retail and then set up a vendor.
One lawmaker pointed out, “GS Retail lays the boards and lays down to benefit their back pockets as if they were collecting toll taxes,” and added, “GS Retail is in a hurry to downsize due to suspicions that it is connected to the owner’s family.”
He then claimed, “Isn’t GS Retail taking care of CEO Han Byeol?”
Oh Jin-seok, Vice President of GS Retail, responded, “We are closely looking into any internal problems.”
AI outlook — possibilities, not facts
Announcement of GS Retail internal investigation results
Likely · Within weeks

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