GS Retail fined 24.4 bln won for unfair biz practice

regulator-GS Retail

GS Retail fined 24.4 bln won for unfair biz practice

SEOUL, Aug. 2 (Yonhap) -- South Korea's antitrust regulator said Tuesday it has decided to impose a combined fine of 24.4 billion won (US$18.6 million) on GS Retail Co., the operator of GS 25 convenience stores, for its unfair business practice.

GS Retail received a total of 19.5 billion won from eight contractors in the name of promotion costs and other fees between November 2016 and September 2019, when it entrusted them with the manufacturing of its own brand food products, according to the Fair Trade Commission (FTC).

The company also took a similar fee of 2.74 billion won from suppliers between February 2020 and April 2021 without proper reasons.

The FTC said GS Retail violated the Subcontracting Act that bans retailers from demanding contractors provide economic returns without legitimate grounds when they entrust business to suppliers.

GS Retail expressed regret over the FTC's decision and said it plans to decide whether to appeal against it after reviewing details of the regulator's measure.

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