South Korea: Regulator probing top discount chains

South Korea’s antitrust watchdog is investigating allegations that the country’s three largest discount chains cheated consumers and forced suppliers to accept losses, market sources said Thursday.

The Fair Trade Commission sent investigators to E-mart and Lotte Mart on Wednesday to check whether they violated laws governing advertisements.

Last week, it also launched a probe into Homeplus following complaints that the retailer used its superior position to compel suppliers to take smaller profit margins for products sold at its stores.

“Investigators checked files to see whether the stores, which advertised lower prices for a set period of time only, did not mark up prices afterward, which can be seen as deceiving consumers,” a market watcher said, asking not to be named.

Retailers have maintained that in some instances, they had to take aggressive steps to reduce inventory even if it means extending the sales period beyond what was advertised and in certain cases lowering prices even more.

“We are in the process of explaining our predicament to the FTC,” a representative for a retailer said.

Full Content: The Korea Herald

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