"Large Corporations Should Conduct Logistics Transactions Through Objective Comparisons"… Fair Trade Commission Begins Final Opinion Collection on Voluntary Compliance Standards

Fair Trade Commission and Ministry of Land, Infrastructure and Transport Hold Business Meeting for Logistics Transaction Structure Improvement and Win-Win Cooperation

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission and the Ministry of Land, Infrastructure and Transport held a business meeting on the afternoon of the 4th at the Korea Press Center to improve the logistics transaction structure and promote win-win cooperation. This was to collect final opinions on the "Voluntary Compliance Guidelines for Opening Logistics Work," which focuses on selecting transaction partners through objective and rational procedures.

At the meeting, executives from eight shipper companies including Samsung Electronics, Hyundai-Kia Motors, LG Electronics, Lotte Shopping, and CJ CheilJedang, as well as ten logistics companies including Samsung SDS, Hyundai Glovis, Pantos, Lotte Global Logistics, CJ Logistics, and Hanjin attended.

The Fair Trade Commission is creating these voluntary compliance guidelines because logistics companies affiliated with large business groups tend to rely heavily on internal transactions and secure volumes through negotiated contracts rather than competitive bidding. The proportion of internal transactions among major large business group logistics companies (43.5%) is higher than the typical internal transaction ratio (12.0%). Accordingly, the Fair Trade Commission has been promoting the establishment of voluntary compliance guidelines to encourage large business groups themselves to refrain from preferentially allocating logistics work internally and actively open work to independent and specialized logistics companies.

The basic principles of the voluntary compliance guidelines are: ▲ selecting transaction partners through objective and rational procedures ▲ expanding direct transactions with independent and specialized logistics companies ▲ efforts to improve efficiency and competitiveness beyond existing practices ▲ prohibition of differential transaction conditions between affiliated and non-affiliated companies and fair trade ▲ securing objectivity and transparency in the transaction process.

Accordingly, shipper companies are required to specify review items when issuing work orders and renewing contracts with affiliated logistics companies to ensure fair and rational comparison and review, and to encourage opening work through direct transactions or bidding with independent and specialized logistics companies. Logistics companies are expected to enhance their logistics activity capabilities as specialized logistics companies and strive to ensure fair and appropriate transactions with partner companies.

The logistics service standard contract draft discussed on this day includes provisions to document contract-related consultations and decision-making, specify the actions, obligations, and liabilities of contractors and subcontractors, and clarify transaction standards and procedures such as payment and compensation for damages.

Based on this meeting, the Fair Trade Commission plans to finalize the draft and hold a signing ceremony with major shipper companies and logistics companies.

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