"Large-scale Distribution Act, a Sandbag Hindering Fair Competition"

Interview with Hong Dae-sik, President of the Korean Competition Law Association

"The Large-scale Retail Business Act was created without fully considering how its implementation would affect the market at the time of its enactment. I believe we have now reached the limit of reasonably applying this law."

Hong Dae-sik, President of the Korean Competition Law Association and Professor at Sogang University Law School, said this during an interview with the press at the seminar titled 'The Legal Systematic Status and Major Issues of the Large-scale Retail Business Act' held on the 30th at the Press Center in Jung-gu, Seoul. He reiterated the need to revise the Large-scale Retail Business Act to better fit the current market environment, given its inherent limitations.

Hong Dae-sik, President of the Korean Competition Law Association (Professor at Sogang University School of Law) [Photo by Korean Competition Law Association]

President Hong argued that the Large-scale Retail Business Act has hindered fair competition within the domestic distribution ecosystem. He stated, "After the enforcement of the Large-scale Retail Economy Act, department stores and large discount stores subject to the law were essentially burdened with sandbags. Meanwhile, new players such as corporate supermarkets (SSM) and home shopping emerged and continued to grow, but the moment they became subject to the Large-scale Retail Business Act, they too had to carry the same sandbags."

President Hong also pointed out that although the Fair Trade Commission used the Large-scale Retail Business Act as a legal tool to regulate transactional relationships in the domestic distribution market, its application was mechanical. He said, "Unlike in the past, the domestic distribution market now has a complex relationship between large-scale retailers and suppliers. The law should be flexible enough to understand the overall perspective and assess ripple effects, but the current Large-scale Retail Business Act does not allow this, so the Fair Trade Commission inevitably faces limitations."

President Hong criticized, "Despite the problems with the Large-scale Retail Business Act, it has not been amended for 10 years. The issues were left unaddressed, and only new provisions were continuously added when new issues arose." He added, "It’s like putting decorations on a garment that was already ill-fitting, making it even more awkward. I hope today's seminar serves as a turning point for a change in direction."

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