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South Korea Orders Dongdaemun Yupdduck Operator to Stop Restricting Franchise Suppliers

By  |  March 8, 2026

South Korea’s antitrust regulator has issued a corrective order to Hotseasoner, the operator behind the popular Dongdaemun Yupdduck franchise, after determining the company unfairly required franchise owners to purchase certain electronic equipment through headquarters-approved channels.

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    According to a statement from the Korea Fair Trade Commission (KFTC) on the 8th, Hotseasoner had required franchisees to purchase point-of-sale (POS) terminals designated by the company for more than 12 years. The practice ran from April 11, 2013, until Aug. 25 of last year, according to a statement from the regulator.

    Per the statement, the company expanded the list of required equipment in recent years. From Sept. 2, 2024, until Aug. 25 last year, kiosks and digital information displays (DID) were also designated as mandatory purchase items. Franchise owners were instructed to buy these devices only from the headquarters or suppliers approved by the headquarters.

    The KFTC said contractual provisions were included that allowed the company to impose supply restrictions, terminate franchise agreements, or levy penalty fees if franchisees purchased the equipment from other vendors, according to a statement.

    However, the regulator determined that the devices in question were standard commercial electronics that could be easily obtained on the open market with comparable performance. Per the statement, the commission concluded that requiring franchisees to buy them only through designated suppliers constituted an unfair restriction on transaction counterparties.

    According to a statement from the KFTC, Hotseasoner later revised its policy on Aug. 26 last year, changing the three items previously categorized as mandatory to recommended purchases. The company reportedly concluded that using equipment from other suppliers would not create issues with system compatibility or POS integration.

    Based on its findings, the KFTC ruled that the conduct violated Article 12, Paragraph 1, Item 2 of the Fair Transactions in Franchise Business Act, which prohibits unfairly restricting business partners’ choice of transaction counterparties, according to a statement.

    An official from the KFTC said the decision is expected to give franchise owners greater freedom when purchasing costly electronic equipment. The official added that allowing franchisees to choose their own suppliers could lower operating expenses by enabling them to select more affordable equipment.

    Source: Biz Chosun