Theborn Korea shuts down Baekseok plant after allegations of using imported ingredients

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Theborn Korea shuts down Baekseok plant after allegations of using imported ingredients

Published: 11 Jul. 2025, 11:43 Updated: 11 Jul. 2025, 14:17

LIM JEONG-WON
[email protected]

Audio report: written by reporters, read by AI

Theborn Korea CEO Paik Jong-won attends a press conference at Space Share Gangnam in Seocho District, southern Seoul, on March 28. [YONHAP]

Theborn Korea, led by CEO and celebrity chef Paik Jong-won, announced on Thursday that it had shut down operations at its Baekseok plant in Yesan County, South Chungcheong, following allegations of violating the Farmland Act by using imported ingredients at a facility located in a protected agricultural zone.

“To ensure safer product manufacturing and improved quality control, we have transferred the Baekseok plant’s production functions to our Yesan Plant and partner manufacturers,” Theborn Korea said.

It added that operations at the Baekseok facility ended in late June.

“The employees of the Baekseok plant have been reassigned to our Yesan facility following individual consultations,” the company said. “Maintaining employment was the top priority.”

Theborn Korea also noted that it is cooperating fully with an investigation by the South Chungcheong Provincial Police Agency regarding violations of the Farmland Act. The company added that it is in discussion with local governments and making efforts to comply with food-related laws and regulations.

The Baekseok plant came under scrutiny for using imported ingredients in its soybean paste products, despite being located in a designated agricultural development area. Under the Farmland Act, facilities in these areas must produce food using domestically sourced agricultural and marine products.

Paik and Theborn Korea has been embroiled in several scandals since early 2025 involving quality control, labeling, hygiene and leadership issues.

Theborn Korea headquarters in Gangnam District, southern Seoul is seen on March 17. [NEWS1]

Complaints arose that his processed meat product “Paik Ham” contained significantly less pork compared to competitors' Spam, yet was priced higher, triggering public outcry. Meanwhile, multiple products, including soy paste and beer, were found to contain foreign ingredients despite being marketed as Korean-made, meaning they violated country-of-origin labeling laws.

These product-related issues were compounded by allegations of poor hygiene practices at festival booths, verbal abuse of staff and misuse of promotional fees. Additionally, earlier incidents such as a safety breach shown in a 2024 video resurfaced, adding to the public backlash.

Consumer confidence and franchisee sales suffered as a result, with major brands like Paik’s Coffee, Hong Kong Banjum and Saemaul Restaurant reporting double-digit sales declines in April.

In response, Paik publicly apologized, suspended his TV appearances to focus on crisis management and relaunched damage-control initiatives.

“We sincerely apologize for using imported raw materials without properly understanding the laws,” the company previously stated.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM EUN-BIN, LIM JEONG-WON [[email protected]]