South Korea: Heineken-owned Jinro Ltd. sues rival Doosan Co.’s public agent

Heineken-owned Jinro Ltd, South Korea's largest soju producer, said November 21 that it has filed a lawsuit against a public relations (PR) agent, accusing the agent of spreading rumors on behalf of its rival, Doosan Co., Asia Pulse released November 21.

Jinro alleged in the KRW10 billion (US$10.6 million) suit filed with the Seoul Central District Court that Doosan's PR agent PromoFactory spread false information, calling Jinro a Japanese-owned company, Jinro spokesman Jeon Young-tae said.

In September, officials at the PR company held a promotional event for Doosan's soju and told to audiences that "Jinro is a Japanese company and Jinro is paying royalties to Japan," Jinro said in a statement. Soju is a liquor distilled from sweet potatoes.

The lawsuit comes amid fierce competition between the two rivals, as Doosan is gaining an increased market share from Jinro with its low-alcohol soju.

"Jinro is a pure Korean company, and it's groundless that a Japanese fund is buying a stake in the company," Jinro said on the main page of its web site.

Jinro was acquired by Hite Brewery Co, the nation's top beer maker, in mid-2005 for KRW3.4 trillion.

22 November, 2006