(1) Reasons for Proposal

As the Act on the Promotion of Mutually Beneficial Cooperation between Large Enterprises and Small and Medium Enterprises (promulgated on October 20, 2020; to be enforced on April 21, 2021) was amended to introduce a corrective order system for ex officio investigation on consignment and commission unfair transactions, this Partial Amendment aims to define matters delegated from the Act and others required for the enforcement thereof.

(2) Major Provisions

A. Criteria to select and reward exemplary consignment and commission companies (Article 5-3 amended)

1) The amended Act adds types of violations subject to ex officio investigation including newly inserted matters which commission companies comply with.

2) In this regard, this Partial Amendment revises the number of the provision that serves as the basis to select exemplary consignment and commission companies and includes the newly inserted matters in the criteria to select such exemplary companies.

B. Basis that imposes penalty points, and type of violation (Article 5-4 amended)

1) The amended Act adds illegal violations subject to ex officio investigation by newly inserting the matters which commission companies comply with, and delegates penalty points, which are imposed on commission companies violating any rule, to be prescribed by Ordinance of the Ministry of SMEs and Startups.

2) In this regard, this Partial Amendment defines criteria to impose penalty points for types of violations subject to ex officio investigation including newly inserted matters which commission companies comply with.