Paik Jong-won's company launches 'support committee' set to provide aid for store owners hurt by recent controversies

A notification posted outside a franchise store, licensed by Paik Jong-won's food and beverage company TheBorn Korea, notifies customers of a company-subsidized sale in this May 13 photo taken in Seoul. (Yonhap)
A notification posted outside a franchise store, licensed by Paik Jong-won's food and beverage company TheBorn Korea, notifies customers of a company-subsidized sale in this May 13 photo taken in Seoul. (Yonhap)

Facing numerous controversies over quality control at his food company, food franchise entrepreneur Paik Jong-won recently put store owners in his culinary empire at the forefront by posting their videos and vowing to give them more input on company policies.

Paik's official YouTube channel on Friday posted multiple short videos of store owners of Paik's franchises, introducing their respective restaurants. The videos did not carry any messages or appear to have alternate motives on surface, but was contrast sharply with the rest of the videos on the channel that heavily feature Paik himself.

The videos were widely interpreted as an attempt to restore faith in Paik and his company TheBorn Korea, which recently faced an array of controversies and police investigations for issues ranging from alleged false advertisements to hygiene issues wtih ingredients. As of Sunday, police are investigating 14 cases related to Paik.

Paik, whose booming business is largely attributed to his fame as TV celebrity, vowed on May 6 to cease all TV appearances to focus on changes within his company. He also stressed that the store owners under his franchises have been suffering from the recent situation, vowing for his company to spend 30 billion-won ($21.67 million) in subsidizing them.

The plan included a company-subsidized sale across franchise stores affiliated with TheBorn Korea.

Paik himself told reporters that he will pursue stern legal actions against attempts to distort his image, which he said can be traced to a few people online.

The recent videos of the store owners on YouTube had their comment sections closed, with a warning that slander and groundless speculation against them could be subject to punishment.

TheBorn Korea, at which Paik is the CEO, said Sunday it is pushing ahead with the plan to launch a committee that will function as communication channel between the company leadership, outside experts, and representatives of store owners. The committee will be where each party will be able to discuss the plans for Paik's franchise stores.

According to the company, it has been hosting regular meetings between Paik and store owners since Paik announced the large-scale subsidy plan. The operation of the committee will be fully funded by Paik personally.


minsikyoon@heraldcorp.com