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Lawmakers blast Adidas Korea chief for unsporting conduct in unfair practices audit

Published: 22 Oct. 2024, 16:15 Updated: 22 Oct. 2024, 16:36

KIM JU-YEON
[email protected]

Kim Jung-joong, head of the Adidas Korea store owners' committee, speaks while holding an Adidas shoe at a parliamentary audit hearing held at the National Assembly building on Monday. Adidas Korea general manager Peter Kwak, far right, also attended to give a testimony on the Korean branch's alleged unfair practices toward its franchise stores. [YONHAP]

Adidas Korea general manager Peter Kwak was criticized by lawmakers on both sides of the aisle for speaking English while being grilled over alleged unfair practices at a parliamentary audit on Monday, having spoken in fluent Korean at a similar hearing last year.

Kwak attended an audit of the Fair Trade Commission to give a testimony on allegations that Adidas Korea violated the Fair Transactions in Franchise Business Act and Fair Agency Transactions Act.

Franchisees accuse Adidas Korea of abusive practices

The Korean division is accused of misusing its power as a franchiser after it terminated contracts with outlets in January 2022. The store owners say the contracts were canceled abruptly without their consent.

The Adidas executive entered the hearing with a translator in tow, whom he relied on heavily at the onset. This is in contrast to last year's appearance when he spoke in Korean, even if he did also bring a translator.

It took precisely one minute for the translator to relay the first question, asked by Rebuilding Korea Party Rep. Shin Jang-sik, to Kwak in English.

"What on earth is this? You're putting on a show, a show!" Shin said while laughing in disbelief.

"You spoke in Korean last year, but why can't you this year?" he said.

Committee chair Rep. Yoon Han-hong talks with secretaries from the People Power Party and Democratic Party at a parliamentary audit at the National Assembly on Oct. 17. [YONHAP]

Committee chair Rep. Yoo Han-hong of the conservative People Power Party (PPP) attempted to settle the matter, saying it was reasonable for Kwak to have a translator as going without one could lead to miscommunication.

Both liberal and conservative party lawmakers, however, were not amused as the involvement of the intermediary meant questions could not be directly answered, costing the committee time.

"The reason why I'm choosing to use a translator this year is because I was very uncomfortable with my ability to fully respond to questions last year. I felt like there was a risk of perjury, which is obviously a very serious offense, and I would not like to present that sort of risk at this time," Kwak responded.

PPP Rep. Kang Min-kuk, meanwhile, asked if Kwak had also brought along translators with him while he studied for his masters at Yonsei University.

The Adidas Korea head, in Korean, replied that it was an international graduate program and that all classes were in English.

"See, your Korean is fluent," Rep. Kang said.

"The problem is your attitude," the politician added in English.

Adidas Korea general manager Peter Kwak answers questions at a parliamentary audit at the National Assmebly building on Oct. 16, 2023. [YONHAP]

The Adidas executive then answered the remaining questions in Korean, but was further criticized for having his hands in his pockets while responding.

"You kept your hands in your pockets the whole time; this is the first time I've seen such an unmannered witness," PPP Rep. Yoo Young-ha said.

Both PPP and DP lawmakers also threatened to launch a special investigation into whether Kwak had any intent to neutralize the parliamentary audit, potentially committing criminal offense of perjury or contempt.

"Mr. Kwak did all his PowerPoint presentations in Korean at important events," Kim Jung-joong, head of the Adidas Korea store owners' committee, said.

"He never used English at our meetings and this is the first time I've seen him like this."

The Adidas general manager also talked in Korean with football player Son Heung-min at an Adidas event in July this year without a translator.

Kwak is a Canadian citizen. He worked as the chief of Nike Korea and Philips Korea before joining Adidas Korea.

BY KIM CHUL-WOONG, KIM JU-YEON [[email protected]]