The Korea Fair Trade Commission (KFTC) has launched an on-site investigation into Lotte Mart regarding allegations that the retailer unfairly passed on promotional costs to its suppliers.

According to industry sources, the KFTC dispatched investigators to Lotte Mart on the 26th to secure relevant materials, likely to determine whether there has been a violation of the Act on Fair Transactions in Large Franchise and Retail Business.

Under this law, retailers are prohibited from imposing promotional costs on suppliers without prior agreement or from making them bear more than 50% of such costs.

Lotte Mart acknowledged the KFTC's on-site investigation but stated that it is unaware of the specific reasons for the investigation.

A Lotte Mart representative said, "We will fully cooperate with the KFTC's investigation."

Meanwhile, a KFTC official declined to comment on the specific details of the investigation, saying, "We cannot confirm the details related to the case."

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