Gyeonggi Province Achieves 94% Success Rate in Franchise Dispute Mediation, Highest Nationwide

Gyeonggi Province has achieved significant results in franchise business dispute mediation, recording a 94% mediation success rate.

On September 16, Gyeonggi Province announced that it had received 61 franchise dispute cases between franchisees and headquarters in the first half of this year, processed 59 of them, and successfully mediated 45 cases, resulting in a mediation success rate of approximately 94%. The success rate is calculated by dividing the number of successful mediations by the sum of successful and unsuccessful mediations, then multiplying by 100. This figure is the highest among all local governments nationwide for the fifth consecutive year.

Since 2022, Gyeonggi Province has handled around 100 cases annually, allowing franchisees and headquarters within the province to resolve disputes quickly and efficiently at the provincial government office, without having to travel to Seoul, where the Korea Fair Trade Mediation Agency is located.

Gyeonggi Province's franchise business dispute mediation has surpassed 94%, achieving significant results. The photo shows the current status of dispute mediation.

In this process, Gyeonggi Province has focused on "restoring business relationships and mutual growth" rather than determining or sanctioning legal violations by the parties involved. As a result, the province achieved a 94% mediation success rate (compared to the national average of about 78%) within an average of 36 days in the first half of the year, well within the statutory processing period of 60 days and the maximum of 90 days.

Gyeonggi Province not only resolves disputes but also provides counseling for damages and educational support.

Seo Bongja, Director of Fair Economy Division at Gyeonggi Province, stated, "Dispute mediation is operated swiftly to accommodate the urgent, livelihood-related issues faced daily by most franchisees and headquarters, and local small business owners can use the service easily and free of charge. We will continue to do our best to help the parties involved reach the optimal agreement and achieve smooth mediation."

Gyeonggi Province operates the Fair Trade Support Center, where four investigators provide counseling for damages and dispute mediation in all areas related to fair trade, including franchise business disputes, as well as agency, subcontracting, large-scale distribution, and general unfair practices, supporting small and medium-sized business owners experiencing difficulties.