Myungryun Jinsa Galbi Loan Row: Government Probes Franchise Lending

The government has moved to investigate a lending controversy involving Myungryundang, operator of Myungryun Jinsa Galbi. According to hankyung.com, the company is suspected of borrowing funds at low rates from institutions including Korea Development Bank, then channeling them through lender firms linked to major shareholders and lending to franchisees needing startup capital at mid-10% interest rates. Reports also raised concerns that 90% of store owners were affected by the structure. Separate coverage said Chairman Lee Jong-geun and his wife held stakes in 12 lender companies. Authorities plan to examine misuse of policy-bank loans and possible split registration of lending businesses, while considering stronger Financial Supervisory Service probe powers and revisions to lending laws. Source: hankyung.com