Busan City Declares Fair Market Economy Localization

First Non-Capital Region Transfer of Dispute Mediation and Other Tasks in Franchise and Agency Sectors

Panoramic view of Busan City Hall. (Photo by Busan City Hall)

[Asia Economy Yeongnam Reporting Headquarters Reporter Yoon Yoseop] Busan City has declared the localization of a fair market economy.

On the 10th, Busan City and the Fair Trade Commission signed a “Business Agreement on the Transfer of Tasks such as Dispute Mediation in Franchise and Agency Fields and Registration of Information Disclosure Statements for Franchise Businesses” at Busan City Hall, announcing that they will closely cooperate to eradicate unfair practices and establish a fair market economy order.

This business agreement is the result of both organizations recognizing the need for more active cooperation to create a mutually beneficial environment beyond the goal of eradicating unfair trade occurring between franchise headquarters and franchisees, and between agency headquarters and agency owners.

The agreement includes ▲establishing a collaborative system to implement a fair economic order ▲conducting joint fact-finding surveys ▲setting up a dispute mediation council ▲providing education and manpower support related to the registration of information disclosure statements.

Following the transfer of tasks, Busan City plans to perform the franchise business information disclosure registration work starting next month, becoming the first non-metropolitan area to do so, and to establish and operate a franchise and agency dispute mediation council. The dispute mediation council in the franchise and agency fields established in Busan City will have the same legal authority as the Fair Trade Mediation Agency.

On the 29th of last month, Busan City newly established the Fair Trade Support Team and plans to newly recruit experts in the fair trade field, such as lawyers and franchise transaction specialists, within this month. It will directly perform the registration work of information disclosure statements for franchise headquarters, which was previously handled exclusively by the Fair Trade Commission.

Accordingly, prospective franchisees will be able to receive necessary information in a timely manner for startup or disputes caused by unfair practices, and will be able to quickly receive relief from damages nearby.

Oh Geodon, Mayor of Busan City, said, “Eradicating various unfair practices occurring in the franchise and agency fields and establishing a fair market economy order is an important task that local governments must perform in the era of decentralization,” adding, “This transfer of tasks will be a strong first step toward realizing the ‘localization of a fair economy.’”

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