Seoul Regional Serious Crimes Investigation Agency assigns Myeongnyun Jinsa Galbi headquarters case over alleged interest profiteering from franchisees
- Input
- 2026-10-20 16:02:55
- Updated
- 2026-10-20 16:02:55
[Financial News] The Serious Crimes Investigation Agency (SCIA) is launching an investigation into allegations that Myeongnyundang, the headquarters of meat restaurant franchise Myeongnyun Jinsa Galbi, lent large sums at low interest to lending companies owned by the chairman’s family, which then profited by making high-interest loans to franchise owners.
According to legal sources on the 20th, the Seoul Regional Serious Crimes Investigation Agency assigned the case to its Anti-Monopoly Investigation Bureau the previous day, after the Fair Trade Commission filed a complaint against Myeongnyundang and Chairman Lee Jong-geun for alleged violations of the Monopoly Regulation and Fair Trade Act.
The Fair Trade Commission previously imposed fines totaling 14.8 billion won last month on Myeongnyundang and lending companies owned by the chairman’s family over unfair internal transactions and violations of the Franchise Business Act, among other grounds.
According to the Fair Trade Commission, Myeongnyundang lent a total of 298.3 billion won to 14 lending companies owned by the chairman’s family over four years and three months starting in December 2021, under the pretext of providing “startup funding for franchisees.” The interest rates were 2.3% to 4.6% annually, markedly below normal borrowing rates.
The Fair Trade Commission concluded that this support helped the lending companies reduce their financing costs and gain approximately 21.7 billion won in economic benefits. It also found that 79 billion won in policy funds borrowed by Myeongnyundang at low interest from the Korea Development Bank had been used to support the lending companies.
The lending companies were later found to have lent money at annual interest rates of 12% to 18% to prospective owners hoping to open Myeongnyun Jinsa Galbi franchises, and to have collected interest.
[email protected] Choi Eun-sol Reporter