Paik reported to police for allegedly violating country-of-origin labeling laws for his food products
Paik Jong-won, often called the "Gordon Ramsay of Korea" for his fame as a star cook and food entrepreneur, has issued an official apology in response to a series of controversies.
On Thursday, Paik released a statement on Theborn Korea's official website saying, "I sincerely apologize and feel a deep sense of responsibility for causing concern to many due to various issues related to Theborn Korea."
Currently, Paik serves as the chief executive officer of Theborn Korea, a food retail company that sells multiple products under his name.
He continued, "As much as we have been loved and supported, we should have responded with better products and service, but we have fallen short of expectations in many ways."
He further expressed, "I deeply regret the unacceptable mistakes that occurred in the production and distribution process," admitting, "All the issues that have been raised so far were due to my lack of careful oversight."
The apology comes amid mounting criticisms of Paik's business practices.
At the heart of the issue is Paik being reported to the police for allegedly violating laws concerning country-of-origin labeling for its food products.
"Baek-seok Doenjang,” a soybean paste from Theborn Korea, was marketed as domestically produced despite being made with imported ingredients.
The ingredient list shows it contains Chinese fermented soybean paste, soybeans from the US, Canada and Australia, and flour from the US and Australia, contrary to its advertising claims.
Theborn Korea also faces allegations of violating the Farmland Act, for producing "Baek-seok Doenjang" in an agricultural promotion zone. Producing products made with foreign raw materials is prohibited in such zones.
In addition, “Hansin Pocha Nakji Bokkeum” (Hansin Pocha stir-fried small octopus), sold through Theborn Korea's online store, was promoted as containing domestically produced green onions, onions and garlic, when, in fact, it was revealed that Chinese garlic was used for the product.
However, Theborn Korea is only responsible for the retailing of "Hansin Pocha Nakji Bokkeum” and not its production.
Should Paik be charged for falsely advertising the products, he could face up to seven years in prison or a fine of up to 100 million won ($68,700) under the Act on Origin Labeling for Agricultural and Fishery Products.
Paik has also recently faced backlash for the low pork content in "Paik Ham," a product from Theborn Korea, and the insufficient tangerine content in "Tangerine Beer" (direct translation).
He also came under scrutiny for placing an indoor Liquefied Petroleum Gas cylinder in a space used to cook chicken indoors. According to the Safety Control and Business of Liquefied Petroleum Gas Act, gas cylinders must be placed outdoors in a well-ventilated area. If violated, the permitting or registration authority can impose a fine of less than 40 million won.
Amid these controversies, Theborn Korea, which was listed on the stock market on Nov. 6 of last year, has seen its stock price decline.
Over the past month, Theborn Korea's shares have dropped by approximately 5 percent, currently selling at 28,700 won per share compared to 30,300 won per share recorded on Feb. 14.
yoonseo.3348@heraldcorp.com
