One in Six Tenants at Complex Shopping Malls in Gyeonggi-do Reports 'Unfair Practice Experience'

[Asia Economy (Suwon) = Reporter Lee Young-gyu] It has been revealed that one out of six businesses located in complex shopping malls in Gyeonggi-do have directly or indirectly experienced unfair practices, such as being forced to comply with specific operating hours.

Gyeonggi-do announced on the 26th that it conducted a telephone survey from July 9 to 17 this year targeting 141 businesses (117 shop managers, 14 agencies, and 10 franchises) located in complex shopping malls and outlets within the province, resulting in these findings.

Among all respondents, 16% (23 businesses) reported having directly or indirectly experienced unfair practices from complex shopping malls.

By type, "forced operating hours" accounted for the largest share at 48%. This was followed by ▲forced interior renovations (35%) ▲pressure to increase sales (30%) ▲unfair store relocation orders and cost shifting (26%) ▲mandatory participation in discount events (17%).

When asked about the most necessary clauses to establish a fair trade environment in contracts with complex shopping malls, respondents cited "the right to request reduced operating hours for justifiable reasons" (43%), "prohibition of shifting interior renovation costs due to unilateral store relocation" (14%), "clarification of the cost-sharing ratio for promotional expenses" (12%), and "the right to request contract renewal" (10%).

Businesses located in these malls ranked "strengthening investigations and penalties against complex shopping malls" (24%) as the top priority for creating a fair trade environment.

The amended "Act on Fair Transactions in Large-Scale Distribution" last year includes complex shopping malls that charge rent based on a certain percentage of sales as subjects of application.

This law defines the act of large-scale retailers unfairly restricting the operating hours of tenant businesses as illegal and stipulates that violators may be fined up to 100% of the rent or, if rent calculation is difficult, up to 500 million KRW.

Kim Ji-ye, Director of the Fair Economy Division of Gyeonggi-do, stated, "The survey results show that unfair practices against small business owners in complex shopping malls continue." She emphasized, "To protect businesses in complex shopping malls, we will strengthen the anonymous reporting system and prepare institutional improvements to reflect tenant voices in managing operating hours and store operations in complex shopping malls."

This content was produced with the assistance of AI translation services.