Fair Trade Commission to Uncover Hidden Abuse of Power in Distribution Industry... Conducting Fact-Finding Survey

34 Distribution Brands Targeting Over 7,000 Suppliers and Store Entry Companies

The Fair Trade Commission will conduct a survey on the distribution industry, including department stores, large discount stores, convenience stores, and online shopping malls. Starting with this survey, a detailed investigation will be carried out to determine whether large-scale distributors are using their trading position to interfere with the business activities of suppliers.

On the 7th, the Fair Trade Commission announced that it will conduct a distribution transaction survey targeting about 7,000 suppliers and tenants trading with 34 distribution brands, and a dealership transaction survey targeting about 50,000 businesses. This year’s survey is the first to be conducted since the declaration of the endemic phase (periodic outbreak of infectious diseases). The Fair Trade Commission plans to closely examine the current situation as the distribution industry undergoes a transition.

First, to verify more detailed trading practices in the distribution industry, the distribution transaction survey will include four additional brands (Costco, Hanaro Mart, AK, Galleria Department Store) added to the 30 brands surveyed last year, targeting suppliers and tenants trading with a total of 34 brands.

This survey will also examine whether large-scale distributors are complying with the payment deadlines for direct purchase transactions, which were newly established one year ago; suppliers’ awareness of promotional event guidelines implemented after the COVID-19 pandemic; and the recognition of new systems introduced last year to facilitate prompt damage relief for suppliers.

In particular, regarding the newly established prohibition clause on management interference under the Large-Scale Distribution Business Act enacted last month, specific cases of large-scale distributors interfering with the management activities of their suppliers will be investigated and reflected in future distribution policies. Additionally, in response to recent changes in the online trading environment, the survey will closely examine whether suppliers have experienced exclusive trading demands from large-scale distributors and their perception of improvements in trading practices related to such conduct.

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