'Non-compliance with Supplier Dispatch Regulations'... Fair Trade Commission Issues 'Correction Order and Warning' to Emart

Emart, which received dispatched employees from suppliers without complying with regulations, has been issued corrective orders and warnings by the Fair Trade Commission.

According to the Fair Trade Commission on the 30th, Emart entered into dispatch agreements with 505 suppliers and supplier employees from March 12, 2019, to March 29, 2021. This was a measure to receive dispatched employees from suppliers, but voluntary request letters were obtained only after a minimum of 1 day and a maximum of 23 days had passed.

The Fair Trade Commission explained that this violates the Large-scale Distribution Business Act, which requires dispatch agreements to be concluded in advance. When a large-scale distributor requests employee dispatch from a supplier, it is difficult for the supplier to refuse such a request, so certain procedures are essential. Accordingly, the Fair Trade Commission imposed corrective orders to prevent the recurrence of the same act.

The Fair Trade Commission also pointed out that Emart delayed payment of product sales proceeds to five suppliers beyond the statutory payment deadline (40 days) without paying delayed interest (approximately 2.2 million KRW). Additionally, it was criticized for not paying product sales proceeds (approximately 120 million KRW) to five suppliers on the grounds of having received provisional seizure orders. However, considering Emart’s voluntary correction, the Commission decided to issue a warning.

The Fair Trade Commission stated, “We will continue to monitor violations of the Large-scale Distribution Business Act to establish fair trade order in large-scale distribution businesses and to enable large-scale distributors and suppliers to develop complementarily on an equal footing.”

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