SEOUL, May 9 (Yonhap) — The nationwide rage against Namyang Dairy Products Co., which allegedly strong-armed distributors into ordering more products, reached new heights on Thursday, as millions of independent store owners vowed to join an ongoing boycott against one of the country’s largest dairy producers.More than 150 associations of pro-small business activists and independent store owners called on Namyang to fully compensate for the «material and emotional damage it caused to the victims.» They added that some six million mom-and-pop establishments dealing with Namyang goods will cut off orders if the company fails to comply by May 20.
The scandal began when a phone conversation between a Namyang sales representative and a distributor emerged on the video sharing Web site YouTube last Friday. In the recording, the salesman is heard threatening and cursing at the store owner after he refuses to accept more products than he can sell.
The ensuing public outcry prompted the president of Namyang to immediately issue an apology and fire the salesman.
But the incident quickly snowballed into a nationwide protest, as franchise owners of the nation’s three major convenience store chains decided Wednesday to stop ordering Namyang goods.
A pro-small business activist group said the planned boycott by independent store owners is aimed at putting in place the proper legislature to protect small businesses from getting bullied by bigger firms.
«We understand that companies are driven by profit,» said Oh Ho-seok, standing president of Save Local Stores Alliance. «But Namyang Dairy went too far by pushing its distributors to the brink of bankruptcy and depriving their families’ right to live.»
Meanwhile, Namyang Dairy held a press conference Thursday morning to apologize for the recent audio scandal.
«As the president of the company, I sincerely apologize for the incident which has caused a major stir in our society,» Kim Woong, the president of Namyang Dairy, said. «I will completely overhaul our staff training system and reevaluate our sales environment to prevent this kind of incident from happening again.»
Shares of Namyang Dairy rose for the first time in six days on Thursday, climbing 2.7 percent to 1,030,000 won as of 11:10 a.m., after suffering a near 13-percent drop since the audio clip went public.
Source: Yonhap News
