Assemblyman Min Hyung-bae Proposes Amendment to Eradicate 'Gapjil' by Large Retailers

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Min Hyung-bae, a member of the National Assembly (Democratic Party of Korea·Gwangju Gwangsan District 2), announced on the 20th that he has proposed a revision to the "Act on Fair Transactions in Large-scale Distribution Business (hereinafter referred to as the Large-scale Distribution Business Act)" to prevent unfair practices by large-scale distribution companies.

Currently, the Large-scale Distribution Business Act stipulates that large-scale distributors cannot impose unfair business hours restrictions on store tenants who rent part of the store to sell products.

However, there is a blind spot in that franchisees who receive sales consignment from brand headquarters located in large-scale distribution stores are not legally protected because they do not have a direct contractual relationship with the large-scale distributor.

This is because, in the peculiar employment structure of the distribution sector, brand headquarters operate by signing intermediate manager contracts with franchisees.

Therefore, franchisees are placed in a position where they are subject to business hour restrictions imposed by large-scale distributors.

The revision proposed by Assemblyman Min includes provisions that prohibit large-scale distributors from forcing business hours on franchisees who receive sales consignment from brand headquarters.

It prohibits large-scale distributors from unfairly restricting business hours of those who have received sales consignment from store tenants.

Assemblyman Min said, "Restricting business hours is another form of unfair practice prevalent in the distribution industry," and added, "We will continue to work to eliminate legal blind spots and establish a fair trade order in large-scale distribution."

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