In a recent turn of events, Baek Jong-won, the representative of The Born Korea (더본코리아), issued a public apology addressing a series of controversies that have plagued the company. On March 19, 2025, Baek posted a second open letter on the company’s official website, expressing regret over the distress caused to the public and franchise owners due to ongoing issues.
Baek stated, "Incidents related to me have caused disappointment and concern, and I apologize once again," highlighting the seriousness with which he and all employees are approaching the current situation. The firm is making all-out efforts to innovate its practices to regain public trust.
Among the key issues raised was the production of 'Ppik Ham' (빽햄), which has been criticized for its high price compared to the low pork content. Responding to this, Baek announced that the production of 'Ppik Ham' has been suspended, and the company is working on developing new products that align better with customer demands for quality and taste. He assured that these new products would be competitive in the global market.
In light of complaints regarding the use of agricultural machinery contaminated with pesticide residues during the Hongseong Global Barbecue Festival held in November 2023, Baek promised rigorous checks on equipment used in all company events. "We will meticulously inspect equipment used in festivals, prioritizing customer safety and trust," he stated, emphasizing the importance of hygiene management.
Beyond immediate product concerns, Baek Jong-won also addressed the ongoing worries of franchise owners. He vowed that The Born Korea would not hold back in providing practical support, sympathizing with their struggles in challenging market conditions. "I will implement support measures that store owners can feel quickly," he confirmed, showing an awareness of the difficulties franchise operators face.
Following earlier criticisms regarding the Baekseok Factory in Yesan-gun, Chungnam, which allegedly violated the Farmland Act by using foreign raw materials in agricultural promotion zones, Baek expressed regret for not fully recognizing the laws regarding imported materials, emphasizing dedication to compliance in the future.
Faced with numerous allegations, including price inflation complaints from franchise owners and other quality control issues like misleading origin labeling on products including soy sauce and soybean paste, Baek stated that The Born Korea is conducting thorough inspections to ensure all product descriptions are accurate. Furthermore, a supervisory monitoring system will be introduced, composed of external experts, to bolster compliance and oversight.
Despite these serious efforts, the controversies surrounding The Born Korea have had noticeable effects on its stock performance. As of March 19, 2025, the company’s stock price fell to 28,500 won, significantly down from its initial public offering price of 34,000 won, and nearly half of the price at its listing in November 2024 of 51,400 won. This decline can be attributed to the accumulation of various controversies surrounding Baek Jong-won, creating uncertainty among investors.
In his message, Baek also addressed the culture within his franchises, countering allegations that the company's online café for franchise owners had created an 'employee blacklist.' He clarified that while a bulletin board had been established at the request of franchise owners, it was not actively used and was intended more for addressing grievances regarding malicious complaints from some employees rather than a mechanism for harassment.
Baek's commitments included a pledge to create a trustworthy brand, fostering growth within the local community, and enhancing the pride among franchise owners. "I will humbly accept all criticism and make immediate improvements where necessary," he concluded, reinforcing his commitment to reestablishing integrity within his business practices.
The controversies surrounding The Born Korea represent a critical test for Baek Jong-won’s leadership as he seeks to restore consumer confidence and stabilize his company amid significant public scrutiny. “We will strive to become a company that consumers can trust and one that franchise owners can feel proud of,” he promised, as the fast-casual food industry watches closely how he navigates these challenges.
