South Korea’s Fair Trade Commission (FTC) decided to fine Myeong Ryun Dang, the operator of Korean barbecue chain Myeong Ryun Jinsa Pork Ribs, a total of 14.8 billion won (US$10.8 million). The watchdog said the company gave excessive economic benefits to 14 affiliated private moneylenders by extending a combined 298.3 billion won in loans at unusually low rates.
From December 2021 through April 2026, the loans carried annual rates of 2.3% or 4.6%. The FTC estimated the lenders’ economic benefit at 21.7 billion won. The affiliates then lent the money to franchisees at annual rates of 12% to 18%. Each of the 14 lenders obtained between 10 billion and 15 billion won, reducing funding costs and risks, the commission said.
The FTC set a 10.4 billion-won fine for unlawfully supporting affiliates and a separate 4.4 billion-won fine for concealing the relationships with the lenders from prospective franchisees. It said Myeong Ryun Dang withheld information about its ties to lenders, loan terms, connections between franchise and loan contracts, and repayment methods—details that could affect applicants’ decisions.
The watchdog said the 14 lenders were effectively owned by Myeong Ryun Dang’s owner, meaning benefits ultimately flowed to the owner’s family. Funds provided to affiliates included 79 billion won in low-interest loans from state-run Korea Development Bank. The FTC said it plans to file a complaint against the company and its chairman.