[News Today] MUSINSA ACCUSED OF POWER ABUSE

[LEAD]
Online and fashion apps have become go-to spots for shopping these days, with Musinsa leading the way. But, allegations have surfaced that they've been carrying out so-called 'abusive practices' against some vendors.

[REPORT]
Musinsa, the number-one mobile fashion platform in Korea.

With more than 8,000 brands, it is the site of choice among teenagers and those in their 20s and 30s. Last year, Musinsa's sales reached nearly one trillion won, or over 740 million dollars.

Some raised suspicions that Musinsa blocked some of the stores from entering rival platforms.

A contract signed between a fashion brand and Musinsa. It says the brand is permitted to sell its products on its own website and on Musinsa only.

If it wants to sell its products somewhere else, it must discuss the matter and reach an agreement in writing in advance.

If the brand sells its products on other online sites without Musinsa's permission, it will be tantamount to a breach of contract.

Fashion brands are also required to manage their prices and inventories in a way that benefits Musinsa. The situation is similar at another fashion brand that has done business with Musinsa for over five years now.

CEO of fashion brand on Musinsa/ (VOICE MODIFIED)
It was like a leash to ensure exclusivity. We were trapped inside Musinsa.

The brand became a target by Musinsa for having transactions with rival platforms.

CEO of fashion brand on Musinsa/ (VOICE MODIFIED)
When we were preparing for a promotional event agreed upon earlier, about two or three weeks later they suddenly said it was cancelled.

If that's true, it could hurt the rights and interests not only of the fashion brands doing business with Musinsa, but of consumers as well.

Prof. Lee Jeong-hui/ Chung-Ang University
They locked fashion brands in to attract more consumers and boost their monopoly.

Musinsa says it's up to the brands to decide whether or not to restrict where to sell their products.