Distribution margin of fried oil suppliers '0 won' Kyochon Chicken franchise headquarters is sanctioned.

The Kyochon Chicken franchise headquarters, which unilaterally cut the distribution margin of chicken oil suppliers to 0 won, will be fined 283 million won along with the Fair Trade Commission's corrective order.

The Fair Trade Commission said Kyochon F&B suffered a loss of about 700 million won from May to December 2021 by cutting the distribution margin of 1,350 won per can to 0 won as cooking oil prices soared with the remaining contract period with fried oil suppliers.

However, during this period, Kyochon F&B's distribution margin for merchants was 4,300 won per can, an increase of 1,900 won.

The FTC decided to impose sanctions on Kyochon FNB, which unilaterally changed the terms of the deal so that only suppliers would bear the burden of soaring prices of cooking oil, saying it constitutes an unfair trade.

The FTC said it has severely sanctioned unfair practices that have abused its superior position and cut the guaranteed margin under the contract, and said it will continue to monitor close areas of people's livelihoods in the future.