Renowned food entrepreneur Baek Jong Won, famously known as the discerning judge on 'Culinary Class Wars', has publicly expressed regret in light of the recent scandals hounding his company, TheBorn Korea. A legal snag brought on by his indictment for breaching the Country of Origin Labeling Act has transformed what was initially consumer discontent into a full-blown legal quandary.
Taking to TheBorn Korea’s official platform on March 13, Baek Jong Won tendered an apologetic message, acknowledging the distress caused by the various issues tied to TheBorn Korea. He conveyed, "I offer my sincere apologies for causing unease to numerous individuals due to the challenges associated with TheBorn Korea. I bear a profound sense of responsibility." Reflecting on the missteps, he admitted, "We fell short in meeting expectations on multiple fronts. I particularly contemplate the concerns emerging from the production and distribution processes."
The central controversy orbits around TheBorn Korea’s misrepresentation of product origins. Following an indictment by the Seoul Office of the National Agricultural Products Quality Management Service, Baek Jong Won stands accused of flouting the Country of Origin Labeling Act. The probe focuses on the mislabeling of TheBorn Korea’s Doenjang (soybean paste) items and the stir-fried octopus delicacy retailed at the Hanshin Pocha franchise pub chain.
TheBorn Korea, operating in the food and beverage domain across restaurant franchise, distribution, and hotel segments, has seen Baek Jong Won steer its growth to encompass over 25 restaurant and café brands while also crafting home meal replacement offerings.
A whistleblower spotlighted that Baek Jong Won had publicly criticized a pizza establishment on the television program 'Baek Jong Won's Alley Restaurant' for lapses in health certificate renewal and product origin mislabeling. The informant contended, "Despite his scrutiny, he himself flouted the Country of Origin Labeling Act for a decade, an utterly unacceptable act."
initially sparked by Baek Jong Won’s Baekseok Doenjang venture, produced at the Baekseok factory in Yesan County, South Chungcheong Province, the saga unraveled foreign-sourced ingredients within the ostensibly domestic product. The factory’s location in an agricultural promotion zone where only local inputs are sanctioned raised concerns of Farmland Act infringement.
Citing Article 59 of the Farmland Act, the incorporation of foreign ingredients within an agricultural promotion zone could invite imprisonment of up to five years or fines reaching 50 million KRW (around 38,000 USD). In response to the furor, TheBorn Korea scrubbed the term "domestic" from its online offerings and sought atonement, apologizing for unwittingly utilizing imported ingredients in contravention of legal statutes.
Similarly, the authenticity of Hanshin Pocha’s stir-fried octopus showcase came under fire as the advertized local condiments were found mixed with Chinese garlic, a tactic denounced as fraudulent by consumers.
Further quagmires surfaced, including TheBorn Culinary Research Institute’s unsafe gas storage practices and a promotional video exhibiting Brazilian chicken, veering off the script of supporting local farmers.
These imbroglios not only cast a shadow over Baek Jong Won but also inflicted substantial harm on TheBorn Korea’s brand integrity. Since its public debut on November 6 last year, TheBorn Korea’s market performance has trailed, currently pegged at around 29,000 KRW (19.98 USD), below the initial public offering rate of 34,000 KRW (23.43 USD). Analysts attribute this decline partially to the recent imbroglios.
Expressing resolve, Baek Jong Won vowed, "We will swiftly tackle all legal and operational quandaries and instigate comprehensive enhancements. As a listed enterprise, we are committed to fostering innovation and expansion to meet the expectations of our stakeholders."
Nevertheless, amid the continued entanglement in controversies, doubts linger over whether this apology suffices to rekindle trust within the consumer and investor circles. The disillusionment is palpable, especially given Chef Baek Jong Won’s longstanding advocacy for local agriculture and domestic produce in his culinary undertakings. His professed aim to bolster local farming seems at odds with the recent developments, leaving many disenchanted.
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