South Korea's corporate regulator said Tuesday that it levied 1.38 billion won (US$1.46 million) in fines on retailer Carrefour Korea for unfair business practices.
The nation's No. 4 discounter was cited by the Fair Trade Commission (FTC) for unilaterally forcing manufacturers to cut prices on products they sell to Carrefour stores, returning products without due cause and intentionally delaying the signing of contracts with suppliers.
"We have ordered remedial actions for the milder infractions and imposed fines for the more serious purchase price discount practices," an FTC official said. He said the measures are part of a greater process to root out unfair transactions in the country's retail sector.
The regulator started an investigation of the large retail outlet this year and said if other violations are detected, it will take appropriate measures.
Carrefour Korea is the local affiliate of French retailer Carrefour SA, accounting for 7.1 percent of the local market share in 2005, with total sales reaching 1.66 trillion won for the year.
South Korean clothing manufacturer Eland Corp. announced it will buy Carrefour Korea Ltd. for 1.75 trillion won ($1.85 billion) in April.
Seoul, July 4 (Yonhap News)
State regulator fines Carrefour for unfair business practices |
