The nation’s antitrust watchdog has fined CJ Freshway, a food distributor serving large restaurant chains, 24.5 billion won ($17.88 million) for unfairly supporting another CJ affiliate to dominate a regional food ingredient distribution market.

The Fair Trade Commission (FTC) has also ordered CJ Freshway to address and rectify these unfair business practices, which have been detrimental to the interests of small and medium-sized restaurants and small business owners.

According to the investigation by the watchdog, CJ Freshway sent 221 employees to FreshOne and covered labor costs totaling 33.4 billion won on behalf of the company. CJ Freshway established 스포츠 FreshOne in 2009 to strengthen its nationwide food distribution network, with a commitment to creating a co-prosperous ecosystem for self-employed individuals and small business owners across the country.

However, the FTC pointed out that CJ Freshway has effectively aimed to drive these small and medium-sized businesses out of the market.

“CJ Freshway did not consider them as partners for co-prosperity, but obstacles or potential risks for its business,” an official at the watchdog said.

“CJ Freshway and CJ Group teamed up to systemically kick them out of the market in the end.”

CJ Freshway acted as the mastermind behind FreshOne’s operations by dispatching hundreds of employees to the company for over 12 years and covering all associated labor costs. This allowed the affiliate to smoothly dominate the market, according to the FTC.