Jurisdiction Over Consumer Cooperatives Transferred from Fair Trade Commission to Ministry of SMEs and Startups

The Ministry of SMEs and Startups and the Korea Fair Trade Commission announced that the amendment to the Consumer Cooperatives Act, which transfers the jurisdiction over consumer cooperatives from the Fair Trade Commission to the Ministry of SMEs and Startups, passed the National Assembly plenary session on April 23, 2026.

Consumer cooperatives are organizations that aim to improve the daily lives of their members by making joint purchases or directly producing goods for consumption. Currently, various consumer cooperatives are operating in Korea, such as Hansalim, iCOOP Cooperative, and Dure Cooperative. These cooperatives are active in areas closely connected to daily life, including direct transactions and distribution of local agricultural products, healthcare and prevention for members, and the operation of cafeterias and bookstores within universities.

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Consumer cooperatives have been expanding into large-scale enterprises based on solidarity among their members, and some are engaged in substantial business activities such as logistics, distribution, and store operations. Until now, the Fair Trade Commission has implemented management and oversight policies for consumer cooperatives from the perspective of consumer protection. However, as the business scale and organizational structure of consumer cooperatives and their federations have grown to resemble those of companies, they have expressed the desire to be transferred to the Ministry of SMEs and Startups, which can focus on growth-oriented management.

The Ministry of SMEs and Startups and the Fair Trade Commission agreed on the need for systematic management and support to ensure the sustainable growth of consumer cooperatives and jointly promoted the transfer of jurisdiction. As a result, following discussions in the National Assembly, it was decided to transfer the jurisdiction over consumer cooperatives from the Fair Trade Commission to the Ministry of SMEs and Startups. This measure is intended to link consumer cooperatives with a variety of business support policies offered by the Ministry of SMEs and Startups.

Since 2018, consumer cooperatives have been exceptionally recognized as small and medium-sized enterprises under the Framework Act on Small and Medium Enterprises, making them eligible for policy funds and support for domestic and overseas market expansion. With the latest amendment to the Consumer Cooperatives Act, the legal basis for such support has become even clearer, enabling consumer cooperatives to receive substantial business support benefits.

Going forward, the Ministry of SMEs and Startups plans to promote institutional improvements to help stabilize the management of consumer cooperatives, including diversification of business activities and expansion of funding channels. At the same time, the ministry will support increased transparency as these organizations expand their operations. Through these measures, the ministry aims to strengthen the self-sustainability of consumer cooperatives and provide tailored support for each cooperative. The amended Consumer Cooperatives Act will be promulgated after approval by the Cabinet following submission by the government, and is scheduled to take effect six months after the promulgation date.

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