# South Korean retail unfair trade enforcement

> Live situation record from CLSTR: https://clstr.news/situations/south-korean-retail-unfair-trade-enforcement
> Updated: 2026-08-11T03:00:00.000Z. Sources: 4. Developments: 2.

The Korea Fair Trade Commission (KFTC) has issued fines and corrective orders against major retail entities for violations of the Large-Scale Retail Business Act.

In one instance, Nonghyup Hanaro Distribution was fined 462 million won for improper collection of “new product entry incentives” on items that did not meet industry standards for newness. The company also faced sanctions for failing to provide timely written contracts to hundreds of suppliers and for shifting labor costs to suppliers without prior agreements.

Separately, LF Networks, operator of the LF Square shopping mall, was fined 418 million won. The KFTC found that the company shifted promotional costs to tenants through incomplete agreements and improperly requested sensitive business information, such as sales figures and commission rates, from 47 suppliers.

## Timeline

### 2026-08-11: LF Networks fined for unfair retail practices

South Korea's Fair Trade Commission fined LF Networks 418 million won for shifting promotional costs to suppliers and demanding sensitive sales data from competitors' stores.

2 sources. https://clstr.news/cluster/lf-networks-fined-for-unfair-retail-practices

### 2026-08-09: Nonghyup Hanaro Distribution fined for unfair trade practices

South Korea's Fair Trade Commission fined Nonghyup Hanaro Distribution 462 million won for unfair practices, including improperly claiming new product incentives for items released years ago.

2 sources. https://clstr.news/cluster/nonghyup-hanaro-distribution-fined-for-unfair-trade-practices

---
Cite as: South Korean retail unfair trade enforcement. CLSTR, https://clstr.news/situations/south-korean-retail-unfair-trade-enforcement