[News Today] Suspicious loans by ‘Myeong Ryun Dang’

[LEAD]

The government has released the results of its investigation into allegations that Myeong Ryun Jinsa Pork Ribs charged high interest rates on loans to franchisees. The findings show that the franchisor borrowed policy funds at low rates, then lent that money to franchisees at interest rates as high as 18 percent.

[REPORT]

Myeong Ryun Dang, which operates Myeong Ryun Jinsa Pork Ribs, directly provided loans to its franchisees.

It approached franchise owners who lacked funds for opening costs or interior work.

The problem was the steep interest rate.

Franchise owner / Oct., 2025 (VOICE MODIFIED)

The interest rate was 15%. I was shocked. I was trapped with no other options left, since I had paid the down payment.

Financial Services Commission and Fair Trade Commission investigations found that Myeong Ryun Dang had borrowed money from the Korea Development Bank and others at low interest rates of three to six percent.

The money flowed to money lenders owned by Myeong Ryun Dang’s CEO, which then lent to franchisees at high interest rates of up to 18 percent.

It was confirmed that they borrowed public funds at low rates and profited from interest payments.

The amount lent to franchisees at these high interest rates totaled more KRW 230 billion, or over USD 156 million.

Im Hyung-joon / Financial Services Commission

‘Myeong Ryun Dang’ made tens of billions of won in interest margins by adding franchisees regardless of whether they made profits.

The government has decided to block policy loans to franchisors found to have made improper loans to franchisees.