Jo Jeong-hun (Rep.) “The ‘Hoka’ market cultivated over several years… the efforts of SMEs (small and medium-sized enterprises) must be protected”

*This content was translated by AI.View Original

It was pointed out in the National Assembly that in the process of global brands’ exclusive distribution rights being transferred to large corporations after SMEs (small and medium-sized enterprises) invested for a long period to pioneer and grow the domestic market, the contributions of existing operators should be fairly evaluated. Voices are growing that a thorough investigation by the Fair Trade Commission is necessary regarding the fairness of the contract termination and the selection of a new exclusive distributor.

According to materials gathered by People Power Party Rep. Jo Jeong-hun (Rep.), a member of the National Assembly’s Political Affairs Committee, domestic distribution company Joyworks has served as the exclusive distributor for the global running shoe brand ‘Hoka’ in Korea since 2018, growing the market. Thanks to Joyworks’ efforts, Hoka’s domestic sales surged approximately eightfold from 13.3 billion won in 2021 to 106.5 billion won in 2025.

However, Joyworks claims that it received a unilateral notice of contract termination from the brand’s headquarters, Deckers, just seven days after the 2026 renewal contract took effect. It also maintains that it was denied supply for already confirmed order quantities. While both parties are proceeding with international arbitration over the validity of the contract termination, headquarters Deckers selected large corporation E-Land as the new domestic exclusive distributor in August.

Prior to the contract termination, a controversy arose over an assault incident involving Joyworks’ Jeon (CEO). Jeon (CEO) admitted to the assault and resigned, but Joyworks argues that individual misconduct and the legal rights of the corporation should be judged separately. On the other hand, E-Land, which was chosen as the new exclusive distributor, maintains that it reviewed the relevant matters legally and concluded the contract in accordance with the law.

In response, Joyworks filed a complaint with the Fair Trade Commission on August 27, requesting an investigation into the actions of headquarters Deckers and E-Land as unfair trade practices. Jo Jeong-hun (Rep.) also questioned through written inquiries for the National Audit whether there were any unfair trade practices in the process of the headquarters’ contract termination and supply suspension, and the selection of a new exclusive distributor, and asked about the appropriateness of the Korea Fair Trade Commission’s handling of the case.

“While freedom of contract and the brand headquarters’ management decisions should be respected, the results and contributions from markets that SMEs (small and medium-sized enterprises) have invested in and grown over a long period also need to be fairly evaluated,” Jo Jeong-hun (Rep.) stated. He added, “While individual wrongdoing by Jeon (CEO) must be held accountable, the rights and interests of the company and its employees should also be considered separately,” and said, “I will ensure that the Korea Fair Trade Commission carefully reviews the appropriateness of the transaction process in accordance with laws and principles.”

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*This content was translated by AI.View Original