Fair Trade Commission Inspects Daiso Operator Over Alleged Supplier Pressure

South Korea's Fair Trade Commission has sent investigators to Asung Daiso's headquarters in Seoul to examine allegations that the retailer pressured its suppliers.

The inspection began on September 8 at the company's office in Gangnam District. Investigators are reportedly examining whether Asung Daiso returned goods to suppliers without legitimate grounds, effectively shifting the burden of unwanted inventory onto them.

The commission is also looking into whether the company demanded money, goods, services or other economic benefits without proper justification. Another focus is whether Asung Daiso passed the costs of sales-promotion events on to its suppliers.

The Large Retail Business Act prohibits major retailers from using their superior bargaining position to impose inventory costs on suppliers. It also bars them from requiring suppliers to provide economic benefits without legitimate grounds.

Asung Daiso reportedly accepted the inspection without significant resistance. That contrasts with Coupang's response to a separate commission investigation, which began on August 19. Coupang refused to cooperate, citing the lack of advance notice, and investigators withdrew on August 24.