LF Networks fined for unfair retail practices

The Korea Fair Trade Commission (KFTC) has imposed a corrective order and a fine of 418 million won on LF Networks, the operator of the LF Square shopping mall complex. The sanctions follow investigations into violations of the Large-Scale Retail Business Act.

Between December 2022 and December 2024, LF Networks conducted 29 promotional events with 174 suppliers and tenants. During this period, the company shifted approximately 58.61 million won in promotional costs to these partners using incomplete agreements that lacked specific product details, event durations, or required signatures.

Additionally, the KFTC found that from July 2022 to October 2025, LF Networks requested sensitive business information from 47 suppliers. This included sales figures and distribution commission rates from competing department stores and retailers. Such requests are prohibited to prevent the misuse of information for unfair practices like forced participation in promotions or unjustified commission adjustments. The KFTC has ordered LF Networks to cease these practices and notify all current trading partners of the corrective measures.