Gyeonggi Province, South Korea, has officially launched an investigation into coercive business practices by franchise headquarters during contract negotiations, marking the first major regional probe into franchise industry abuses in the country. The investigation, announced by provincial officials on June 22, will examine allegations of unfair contract terms, excessive fees, and non-compliance with consumer protection laws affecting tens of thousands of franchisees across the region.
According to Gyeonggi Provincial Government officials, the investigation will focus on three key areas: mandatory franchise agreements that restrict business operations, disproportionate termination clauses, and hidden fees that violate South Korea’s