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Baek Jong-won, chief executive of The Born Korea. (Photo: Yonhap News Agency) |
[Alpha Biz= Paul Lee] Mediation efforts by South Korea’s opposition Democratic Party of Korea to resolve a dispute between The Born Korea and franchisees of its brand Yeondon Bolkatsu have collapsed.
According to the National Franchise Owners Association on Sunday, The Born Korea rejected a final mediation proposal presented by the party’s Euljiro Committee on June 4.
Franchise owners have accused the company of recruiting store operators using projected sales and profit figures that failed to materialize in reality, raising allegations of misleading or exaggerated advertising.
The franchisees had requested mediation through the Euljiro Committee, and negotiations began late last year after The Born Korea agreed to participate in the process.
The committee reportedly proposed a settlement plan that included a formal expression of regret from the franchisor and compensation of about 70 million won ($52,000) per franchise owner.
However, The Born Korea ultimately rejected the recommendation, bringing the mediation process to an end.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
