Chung-Food, the manufacturer and seller of the soy milk brand VegeMil, has been investigated by the Fair Trade Commission (FTC) over allegations that it forced products onto its regional agencies, a practice commonly known as "mil-eonaegi" (forcing unwanted stock).

According to industry sources on Monday, the FTC dispatched investigators to Chung-Food's headquarters from August 8 to 11 to conduct an on-site inspection to verify potential violations of the Act on Fairness in Franchise and Agency Transactions (Agency Act).

The FTC is reportedly looking into whether Chung-Food forced nationwide agencies to purchase products against their will for the purpose of boosting sales.

The Agency Act prohibits suppliers from unfairly exploiting their bargaining position to compel agencies to purchase goods they have no intent to buy.

(Photo: Capture of Chung-Food website, Yonhap News)