Prosecutors indict The BORN Korea over false 'wild-caught shrimp' advertising; Paik Jong-won cleared

[Financial News] The BORN Korea and an employee in charge of the matter have been indicted for allegedly mislabeling the company’s product as containing 'wild-caught shrimp.' Paik Jong-won, CEO of The BORN Korea, was cleared after prosecutors determined that there was insufficient evidence to support allegations that he was involved in the advertising.
According to legal sources on the 21st, the Seoul Central District Prosecutors’ Office’s Criminal Division 2, headed by Chief Prosecutor Lee Joo-hee, indicted The BORN Korea and Employee A, who was responsible for home-shopping sales in the distribution business team, without detention on the 16th for violating the Food Labeling and Advertising Act. Paik, meanwhile, was not indicted due to insufficient evidence.
The case began with complaints filed by the Gangnam District Office and others. The BORN Korea and Employee A are accused of falsely advertising Deopjuk by posting the phrase 'wild-caught shrimp' on an online shopping mall even though farmed shrimp from Vietnam was used as the topping.
Employee A’s side reportedly maintained that they had merely failed to notice that the phrase 'wild-caught shrimp' had been entered incorrectly while rushing to prepare a home-shopping broadcast, and that there had been no intention to advertise falsely.
Prosecutors reportedly determined that the allegations were substantiated because the advertisement was posted without verification, even after the company was asked to provide evidence of whether the shrimp was wild-caught before the advertisement was published.
Police initially decided not to refer the case to prosecutors, saying there was no evidence that Paik had conspired in the false advertising. However, the case was transferred to prosecutors after the complainant filed an objection, leading to a reinvestigation.
During the reinvestigation, police examined The BORN Korea’s internal approval rules and determined that the advertisement had been approved under delegated authority at a lower-ranking level. They reportedly found no evidence that Paik had personally approved the advertisement or was aware of its contents. 
Regarding allegations that sweet potato bread made with Chinese sweet potatoes had been promoted as containing 'our agricultural products,' both The BORN Korea and the marketing team’s social media staff were cleared of wrongdoing.
 
[email protected] Choi Eun-sol Reporter