Photo = Fair Trade Commission

 

[Alpha Biz= Reporter Kim Jisun] The Korea Fair Trade Commission (KFTC) has initiated an on-site investigation into Musinsa, a popular fashion platform, over allegations of unfair practices toward its partner brands. 

 

According to industry sources on the 26th, KFTC officials visited Musinsa's headquarters in Seoul's Seongdong District to collect relevant documents, including contracts with partner brands.

Musinsa is accused of unfairly interfering with its partner brands' ability to do business with competing platforms. Reports suggest that Musinsa imposed conditions on these brands, such as requiring them to obtain written consent before selling on other platforms or managing prices and inventory in a way that favored sales on Musinsa.

The KFTC is investigating whether these practices constitute an abuse of market dominance by restricting "multi-homing" (where a company uses multiple platforms) or violating the "most favored nation" clauses. A KFTC official stated, "If any violations are found, we will respond strictly."

 

 

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