Fair Trade Commission Issues Corrective Orders to AK Department Store and Others for 'Gapjil' in Payment to Suppliers

On the 18th, the Fair Trade Commission decided to impose corrective orders on AK Plaza department store and others for delivering contracts late to suppliers and failing to pay product sales proceeds on time.

AK Plaza and Taepyeong Department Store did not immediately provide suppliers with contracts containing essential details such as transaction type, items, and duration at the time of agreement. The contracts were delivered up to 14 days after the contract start date.

In particular, AK Plaza delayed payment of product sales proceeds beyond the legal payment deadline (within 40 days from the end of the monthly sales period), citing provisional seizure of the supplier's sales proceeds claims. The delayed interest was also unpaid for up to 455 days.

The Fair Trade Commission stated, "This measure emphasizes that large-scale retailers must provide contract documents immediately upon contract conclusion and pay product sales proceeds within the legal deadline when dealing with suppliers. It is significant in raising the responsibility and awareness of large-scale retailers." It added, "We will continue to monitor to prevent recurrence of the same legal violations and impose strict sanctions if violations are detected."

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