Peter Kwak (R), the CEO of Adidas Korea and Kim Jung-joong (L), head of the Adidas franchise owners’ association. (Image courtesy of Yonhap)
SEOUL, Oct. 23 (Korea Bizwire) – The CEO of Adidas Korea, Peter Kwak, faced harsh criticism from lawmakers on October 21 for what they deemed an uncooperative attitude during a parliamentary audit, particularly his insistence on speaking English despite demonstrating Korean language ability.
Kwak appeared as a witness before the National Assembly’s Political Affairs Committee to address allegations that Adidas Korea violated franchise and agency laws.
The company has been under scrutiny since January 2022, when it reportedly terminated contracts with numerous franchise owners, a move that store owners claim was unilateral.
Representative Shin Jang-sik of the Rebuilding Korea Party noted that Adidas Korea had closed all but 19 of its more than 120 franchise locations nationwide in 2022, shifting to direct sales operations.
When asked about efforts to resolve issues with the more than 80 affected franchise owners, Kwak chose to respond in English through an interpreter, despite having spoken Korean at a similar hearing the previous year.
When questioned about this change, Kwak explained in English that he wanted to avoid potential perjury risks due to language limitations. However, his explanation drew skepticism from lawmakers when he later responded in fluent Korean to questions about his master’s degree from Yonsei University.
“See? You can speak Korean well,” said Representative Kang Min-kuk of the People Power Party, who then switched to English himself, stating, “The problem is your attitude.”
The controversy deepened when Kim Jung-joong, head of the franchise owners’ association, testified that Kwak had regularly given presentations in Korean during strategy meetings and had never previously used English in business settings.
Kim also revealed that franchise owners had received no communication from headquarters following last year’s hearing, with many facing substantial debt and some declaring bankruptcy.
Kwak’s demeanor came under additional scrutiny when Representative Yu Young-ha criticized him for keeping his hands in his pockets during the hearing, describing it as unprecedented behavior for a witness.
“I’m not sure how much cultural difference exists between Canada and Korea, but this is incomprehensible,” Yoo remarked.
The parliamentary committee suggested that Kwak’s behavior might warrant investigation for potential contempt of parliament or perjury, particularly given his apparent attempt to delay proceedings through unnecessary translation despite his demonstrated Korean language proficiency.
M. H. Lee (mhlee@koreabizwire.com)
