South korea: South Korea's fair trade watchdog has announced the commencement of a deliberation process into Myeong Ryun Dang, the operator of the popular Korean barbecue restaurant chain Myeong Ryun Junsa Pork Ribs, over allegations of offering low-interest loans to its money-lending affiliates using funds from state financing programs.

According to Yonhap News Agency, the Fair Trade Commission (FTC) stated that its examiners' report revealed Myeong Ryun Dang extended excessive economic benefits to 14 credit businesses under its control from December 2021 to April 2026. These benefits were allegedly provided through the lending of funds at significantly low interest rates. The report indicated that the restaurant chain operator supplied up to 10 billion won (US$6.5 million) per credit business using funds sourced from Korea Development Bank's policy financing, with the affiliates subsequently lending the money to stores.

The 14 affiliates, which reportedly struggled to secure funds independently due to their status as newly launched entities, received these funds from Myeong Ryun Dang at an interest rate of 4.6 percent, considered relatively low. The FTC highlighted that these arrangements allowed the affiliates to enjoy economic benefits amounting to approximately 21.7 billion won.

The examiners' report classified these actions as serious breaches of the country's fair trade regulations, recommending measures such as corrective orders, fines, and the filing of complaints against the companies and individuals involved. The watchdog emphasized its intention to make a final decision after ensuring the respondents' right to defense is upheld. It also clarified that the examiner's report does not determine the FTC's final ruling.