A protracted dispute between South Korean craft brewer Sevenbrau and flour maker Daehan Flour Mills over the hit “Gompyo Wheat Beer” has been resolved through mediation, government officials said.
The conflict arose from disagreements over a collaboration and trademark agreement tied to the beer, which became a breakout success after its launch in May 2020, selling more than 58 million cans.
Tensions escalated after Daehan Flour Mills terminated its contract with Sevenbrau in April 2023 and partnered with another manufacturer to release a second version of the product. Sevenbrau alleged the termination was unilateral and claimed its brewing methods had been shared with a third party. Daehan Flour Mills denied the allegations, arguing that Sevenbrau had overstated its rights by portraying itself as having exclusive control over the brand.
The Ministry of SMEs and Startups said the dispute was fully resolved following mediation by a government-affiliated committee focused on resolving technology and business conflicts involving smaller firms. The process concluded after three years of dispute and six months of formal mediation.
Under the agreement, both sides will withdraw all legal claims and complaints. Daehan Flour Mills also agreed to contribute to a co-prosperity fund to support Sevenbrau’s business stability, technology development and market expansion.
Officials said the fund will be used to strengthen the smaller brewer’s competitiveness.
The case underscores how prolonged legal disputes can be settled through negotiation and compromise, limiting potential damage to both companies and the broader business ecosystem, officials said.
