An official poster for Hongseong County's global barbecue festival in November 2023 shows Theborn Korea CEO Paik Jong-won, top, as one of featured celebrities and online influencers. Courtesy of Hongseong County Office

Paik Jong-won talks during a cooking competition show he jointly hosted with Yesan County Office in South Chungcheong Province, Dec. 13. Paik joined the event as a model for Korea Pork Board. Courtesy of Korea Pork Board

Restaurateur and CEO of the food and beverage franchise company Theborn Korea, Paik Jong-won, is raising concerns that his influential presence in the industry is prompting local municipalities across the country to compete for his services as a key consultant for local food festivals, offering him large sums of taxpayer money as stipends.

While Paik's expertise in attracting consumers to dine-in or takeout stores is widely recognized as unparalleled in the country, local governments are facing criticism for seemingly relying on him, raising concerns about the potential for him to monopolize the consulting market. The total amount of taxpayer money paid to his company by local authorities over the past two years is estimated to be around 10 billion won ($7 million).

Local governments have been hiring Paik as a consultant for various regional development projects. According to data shared by Theborn Korea during a press conference in October, Paik has been involved in over 30 such projects since 2020, either by signing memoranda of understanding (MOUs) or launching MOU-bound initiatives.

Most recently, he signed MOUs with Yeoju City in Gyeonggi Province in September, Eumseong County Office in North Chungcheong Province in July, and Hongseong County Office in South Chungcheong Province in March, all aimed at revitalizing their downtown areas and local marketplaces. Additionally, authorities in Hongseong and Paik have agreed to enhance the county's annual global barbecue festival, a collaboration that began last year. Hapcheon County Office in South Gyeongsang Province said it agreed to pay 350 million won to Theborn Korea for Paik's consultation to develop food streets within a video theme park in the county.

Most regional development projects in the country utilize seasonal food festivals, traditional marketplaces, local restaurants, and tourism hotspots as key attractions. These festivals often highlight each municipality's local specialties, ranging from food to indigenous species or notable geographic sites. To attract as many visitors as possible, local governments have turned to Paik's ideas. In exchange, the authorities paid him with the aim of revitalizing local commerce.

Paik's consulting fee is known to range from 300 million to 600 million won per session, with some sessions reportedly earning him nearly 1 billion won, according to market observers.

Critics argue that because most local authorities are rushing to Paik with events they hope will succeed, the stipends funded by taxpayers are being funneled entirely to Theborn Korea. The lack of a legal standard for consultation fees in regional development projects has also become a significant issue.

Market observers have expressed concerns over the situation.

A professor at Yonsei University, while acknowledging Paik's talent as a strategist for revitalizing local commerce through food, said "all consulting bids for regional festivals and development projects rushing toward Paik seem problematic." He further emphasized that regional festivals "should focus on becoming more sustainable, making them a seasonal attraction rather than a transient event, to better promote themselves to the public."

Theborn Korea addressed the concerns, denying that Paik is monopolizing the consulting market. The company also disputed the reported consultation rates, stating that the figures commonly cited are not true.

Paik gained fame through his appearances on TV shows, where he served as a troubleshooter for struggling food businesses or a judge in cooking competitions. His popularity helped drive the rapid growth of Theborn Korea, which he founded in 1994. The company now operates over 20 brands in the food and beverage industry, including restaurants, coffee shops, and bars.

He made headlines in early November when the company debuted on the country's stock market. As of Friday, the company's market value stands at 456 billion won.