Enforcement of the Living Logistics Act from the 27th... Establishing a Foundation for Sustainable Growth in Parcel Delivery and Shipping Agency Services

A Smart Living Logistics Service Industry Embracing Workers for a New Leap Forward

[Asia Economy Reporter Kangwook Cho] A legal framework has been established to support and foster the daily logistics industry, including courier and delivery agency services, and to improve the rights and interests of workers by ensuring job stability and safety.

The Ministry of Land, Infrastructure and Transport announced on the 26th that the "Daily Logistics Service Industry Development Act" (hereinafter referred to as the Daily Logistics Act), enacted on January 26 to systematically foster and manage the daily logistics service industry such as courier and food delivery services and to protect workers, will be enforced starting from the 27th.

With the enactment and enforcement of this separate law, government support for the daily logistics industry?which has become a universal service in our lives due to the activation of e-commerce and the increase in non-face-to-face consumption caused by COVID-19?is expected to be fully activated.

Courier and small parcel delivery agency businesses will be institutionalized. Until now, courier services, which were managed mainly based on the supply and demand of freight vehicles under the "Freight Vehicle Act," will shift to a registration system to establish a management foundation for industry development, including improving the treatment of workers.

An excellent business certification system will be introduced for delivery and quick service businesses, which were previously free businesses. To prevent reckless driving, education for workers will be conducted, and excellent companies that consider the treatment of delivery workers will be certified. Support will also be provided, such as subscribing to group insurance for two-wheeled vehicles through the establishment of a small parcel mutual aid association, to induce autonomous market improvement.

Couriers must register their businesses by October 27, within three months of the law’s enforcement, and delivery and quick service businesses plan to prepare detailed certification standards within this year and accept applications for excellent business certification.

Various policy measures will also be prepared to protect workers who have been forced into intense, long working hours due to the surge in cargo volume and to improve the industry’s sustainability. Unless there is a serious fault on the part of the courier worker, they are guaranteed to maintain contracts with courier businesses for six years, and headquarters will directly inspect whether safety and health measures for courier workers are implemented at the branch level.

A legal foundation has also been established to install daily logistics rest areas that can improve working conditions for workers during extreme heat or cold such as heatwaves and heavy snow. To ensure the safety of riders and pedestrians, the establishment of a mutual aid association is being promoted to reduce the expensive commercial motorcycle insurance premiums, which have been a chronic problem.

Protection measures for daily logistics consumers will also be strengthened. To prevent disputes related to delivery in advance, businesses must draft service terms reflecting compensation and exemption provisions, and in case of delivery disputes, courier businesses are jointly liable to compensate consumers. Additionally, to improve service quality, courier service evaluations reflecting reliability and friendliness will be conducted and announced annually.

To create a healthy ecosystem for the industry, a new obligation to prohibit unfair trade practices such as unjustly charging or refunding courier fees between large consignors like home shopping companies and courier businesses has been introduced. If necessary for improving the industry’s transaction structure and protecting consumers and workers, improvement orders can be issued.

A mid- to long-term plan will be established to strengthen the competitiveness of the daily logistics industry, which has become an essential service in the COVID-19 era, and systematic fostering and support will be provided. When local governments promote large-scale development projects, plans to secure daily logistics facilities will be reflected in related plans, and support will be provided for installing logistics facilities in underdeveloped areas and for the advancement of logistics facilities. In addition, support measures for fostering ventures and startups, such as regular industry surveys, building statistical systems, standardization projects, startup support, and professional workforce training, will be actively pursued.

Meanwhile, according to the final agreement of the social consensus body to prevent courier worker overwork, the Ministry of Land, Infrastructure and Transport has prepared a standard contract containing key social consensus items such as excluding courier sorting work, limiting working hours, and prohibiting unfair practices. It will be posted on the Ministry’s website starting from the 28th.

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