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[All] Summary of Baek Jong-won's Controversy! Hidden Facts We Didn't Know About, Such as Manipulation of Country of Origin and Violation of Food Sanitation Act
Summary of Baek Jong-won's Controversy! Hidden Facts We Didn't Know About, Such as Manipulation of Country of Origin and Violation of Food Sanitation Act
These days, Baek Jong-won's controversy is really endless. Who would have thought that CEO Baek Jong-won, who had a friendly and trustworthy image on TV, would be at the center of such controversy? In particular, people's disappointment is growing as the controversy over manipulation of origin, violation of food sanitation law, and franchise operation is added.
Since The Born Korea went public, these issues have been continuously surfacing, but this controversy... To be honest, there are many parts that are quite shocking. What on earth happened? Let's organize the Baek Jong-won controversy!
1. Controversy over the manipulation of country of origin – Are consumers being deceived?
It has been revealed that some of the products sold by Baek Jong-won's The Born Korea had incorrect country of origin labels.
Baekseok Doenjang : Advertised as domestically produced, but in reality made with Chinese doenjang and American/Australian wheat flour Hanshin Pocha Stir-fried Octopus : Chinese garlic is labeled as domestic |
This is not a simple mistake, but a legal issue, so CEO Baek Jong-won has been criminally charged . Criminal charges are a procedure in which the police officially investigate a person for criminal charges, and if the charges are confirmed, he could face up to 7 years in prison or a fine of up to 100 million won .
For consumers who have trusted and purchased the Daebon Korea brand, this is truly absurd. Labeling the country of origin is the most basic of basics, but the fact that this was lied about is shocking.
2. Violation of the Food Sanitation Act? Controversy over apple juice with pesticide container
Second, the Baek Jong-won controversy. This is a truly absurd incident. In November 2023, at the Hongseong Global BBQ Festival, a person who appeared to be an employee of The Born Korea was caught spraying apple juice with a pesticide sprayer.
You put apple juice in a pesticide container and spray it on food...?
In addition, the controversy grew as suspicions were raised that even the grill used for cooking barbecue looked like the iron plates used at construction sites.
In response, Daebon Korea explained, "It did not violate the Food Sanitation Act, but we will not use it in the future."
However, public opinion is cold as consumers are responding by asking, "Why did you use such a tool in the first place?"
3. The Backham Controversy – Expensive and Not So Good?
Do you all remember the Baekham that was released before the Lunar New Year holiday? This is a new fact that I discovered while sorting out the Baek Jong-won controversy. Is Baekham actually the worst gift in terms of cost-effectiveness...?
- Lower pork content than competing products - The price is rather more expensive - A marketing strategy that sets a high regular price and then offers a large discount. |
To be honest, from the consumers' perspective, they might have thought, "This is a bit off." As the controversy grew, CEO Baek Jong-won eventually announced that he would stop producing Beckham , but it won't be easy to restore trust once it's been lost.
In particular, the part that CEO Baek Jong-won explained on YouTube actually caused more controversy. It was when he said , "We intentionally reduced the meat content because it was made for budaejjigae."
Consumers protested, saying, "Shouldn't it have been stated accurately in the product description?"
4. Franchise Operation Controversy – “It’s not our Jjamppong!”
The franchise problem of The Born Korea is also continuously being pointed out. In particular, there were many complaints about the difference in taste and quality of food in each branch of Hong Kong Banjeom. In an interview, CEO Baek Jong-won famously said, "It's not our Jjambbong!"
What this means is that if it doesn't taste good, it's not because we made the jjambbong, but because the owner is at fault. Since it's a franchise brand, it should taste the same no matter where you eat it, so there's continued criticism that this is the owner's fault.
In addition, with statistics showing that Yeondon Volkatsu has a 75% closure rate , many people are starting to doubt whether the brand is being managed properly.
5. Stock price halved, and there is even controversy over dividends
As the Baek Jong-won controversy continues, The Born Korea's stock price has fallen by half since its listing. It especially plummeted after the Beckham controversy broke out, but the problem is that CEO Baek Jong-won decided to pay dividends during this time .
Major shareholder (Baek Jong-won) Dividend : 200 won per share Dividend to ordinary shareholders : 300 won per share Baek Jong-won's total personal dividend : approximately 1.7 billion won |
After seeing this, some shareholders complained, saying, "He is taking all his dividends in the midst of the controversy."
Is this the right way to respond to the Baek Jong-won controversy?
Currently, CEO Baek Jong-won is showing a willingness to confront the controversy head-on by issuing an apology. However, the fact that he continues his broadcasting activities even amid the controversy is creating another controversy.
There are so many shows scheduled for this year, including Black and White Chef Season 2, Business Genius Baek Sa Jang Season 3, and Chef of the South Pole . Some are questioning whether it is right to run shows at the same time when they should be focusing on solving business issues.
What does the future hold for Baek Jong-won and The Born Korea?
So far, I have summarized the Baek Jong-won controversy.
To be honest, I think this controversy is felt more because CEO Baek Jong-won is a person with a good public image. However, since the franchise business is an industry where consumer trust is most important, it won’t be easy to regain trust once it’s been lost.
I think we will have to wait and see how The Born Korea will overcome this crisis and what choices CEO Baek Jong-won will make as a businessman!
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Author 메추리알쏙쏙
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