Myeong Ryun Dang fined $10.8 million for unlawful affiliate support

South Korea’s Fair Trade Commission (FTC) has imposed a provisional fine of 14.8 billion won ($10.8 million) on Myeong Ryun Dang, the operator of the popular barbecue chain Myeong Ryun Jinsa Pork Ribs. The regulator also announced plans to refer the company and its chairman, Lee Jong-geun, to prosecutors.

The investigation revealed that between December 2021 and April 2026, Myeong Ryun Dang provided 298.3 billion won in low-interest loans—with annual rates of 2.3% to 4.6%—to 14 private moneylenders owned by the chairman’s family. These affiliates then lent the funds to franchisees at much higher annual interest rates ranging from 12% to 18%. The FTC estimated that the moneylenders received approximately 21.7 billion won in economic benefits through this arrangement.

Additionally, the FTC found that Myeong Ryun Dang violated the Fair Franchise Business Act by concealing its relationship with these lenders. The company failed to disclose the ties, loan terms, and the connection between franchise and loan contracts in its information disclosure documents, which could have influenced prospective franchisees. The fine includes 10.4 billion won for unlawful affiliate support and 4.4 billion won for deceptive information practices.