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[Alpha Biz=(Chicago) Reporter Kim Jisun] The parent company CJ is plunging on media reports that the FTC may impose a fine of more than 500 billion won on Olive Young, which is suspected of forcing its partners to exclusively deliver its products.
As of 1:30 p.m. on the 4th, CJ is trading at 79,400 won, down 10,400 won (11.58%) from the previous day.
The previous day, a media outlet reported that the Fair Trade Commission, which has been investigating Olive Young since May last year, ruled that it had abused its exclusive status.
Olive Young presented an agreement to a certain partner company that included a clause that said, "We cannot deliver products to other distribution channels," and expelled partners who failed to comply with it. It is also suspected of receiving products at low prices and making additional profits by selling them at regular prices after the event.
The FTC can impose fines of up to 6% of its total sales during the period of violation, which amounts to 588.5 billion won alone. The FTC plans to hold a plenary session as early as this month to determine the amount of fines and whether to file a complaint with the prosecution.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
