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Restaurant franchise owners express dissatisfaction with brand influence due to scandals and slumping earnings.

Struggling Attraction: Business Proprietors Face Waning Appeal of Franchises, Particularly in the Food Service Industry

Business proprietors increasingly find franchises unattractive, particularly within the restaurant...
Business proprietors increasingly find franchises unattractive, particularly within the restaurant and cafe sectors.

Restaurant franchise owners express dissatisfaction with brand influence due to scandals and slumping earnings.

From Hero to Scoundrel

It appears a Hong Kong Banjeom restaurant, helmed by beleaguered celebrity chef Paik Jong-won's company, TheBorn Korea, is offering discounts on May 13 in Seoul. [YONHAP]

The Fall of a Celebrity Icon

Paik Jong-won, once the darling of Korean cuisine, now battling a string of scandals that has tarnished his reputation and that of his company.

The Paik Jong-won & TheBorn Korea Saga

Since early 2025, Paik Jong-won and TheBorn Korea have been embroiled in a series of scandals, ranging from food labeling and advertising law violations, food safety issues, workplace bullying, to questionable operational practices.

Labeling and Advertising Law Breaches

TheBorn Korea was charged with mislabeling its Paik-seok doenjang, a soybean paste product advertised as Korean-made but containing Chinese fermented paste ingredients - a clear breach of Korea's country-of-origin labeling laws and the Farmland Act.

Food Safety and Operational Blunders

Additional controversies involved using Brazilian chicken in meal kits, misleading labeling on tangerine-flavored beer due to low tangerine content, low pork content in "Paik Ham," unsafe use of indoor liquefied petroleum gas cylinders in cooking areas, and improper food storage and handling practices such as frying chicken with leftover bones.

Workplace Abuse and Bullying

Accusations of workplace bullying and abuses of power further damaged Paik Jong-won's reputation.

Other Controversies

The scandals also includes food preparation with rusted oil drums, use of non-food-grade plastic containers, unauthorized use of images at festivals, and hygiene issues.

Apologies, Stepping Down, and Public Backlash

Despite numerous apologies from Paik Jong-won, investigations and public backlash continue. The company went public in November 2024, but controversies have since escalated.

These incidents have left uncertainty about Paik Jong-won's television career and the future of TheBorn Korea. [1][2][3][4][5]

  1. The current scandals surrounding Paik Jong-won and TheBorn Korea have raised questions about the ethics and transparency in the entertainment, food, and business industry.
  2. In the face of these controversies, it is worth considering the role of corporate responsibility and entrepreneurship in maintaining public trust and reputation.
  3. While the case of Paik Jong-won serves as a stark reminder of the potential pitfalls of fame and success, it also presents an opportunity for reflection and reform within the television, business, and restaurant sectors.
  4. As the line between entertainment, business, and finance becomes increasingly blurred, it is essential to maintain high standards of integrity and accountability to preserve the credibility of public figures and companies.
  5. In light of the ongoing controversies, it would be interesting to see what insights could be gained from a column offering industry opinions on the future of celebrity brands and the impact of scandals on consumer behavior and financial markets.

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