The Korea Fair Trade Commission (KFTC), South Korea's competition regulator, imposed a combined 14.8 billion Korean won in penalties on Myeong Ryun Dang over alleged unfair support for 14 lending companies owned by the family of chairman Lee Chong-kun. The company lent the firms 298.3 billion won at annual rates of 2.3% or 4.6%, while the lenders extended franchisee loans at 12% to 18%; the KFTC estimated a 21.7 billion won funding-cost benefit. The regulator also found that franchise disclosure documents concealed the lenders' relationship with Myeong Ryun Dang, loan terms, contractual links and repayment methods. It issued a prohibition order and referred Myeong Ryun Dang and Lee Chong-kun for prosecution.