To strengthen international competitiveness of the domestic logistics industry and lower logistics costs, the third-party logistics market needs expansion. However, Korea’s use of third-party logistics is low compared to leading nations (81% in Europe, 76% in Japan, 65.3% in Korea).

Logistics subsidiaries of conglomerates have funneled most of their marine cargo transportation work to their affiliates, which prevents the stimulation of third-party logistics and significantly weakens competitiveness across the logistics industry. This has created a need to prepare regulatory measures such as restrictions on contracts entered into by business groups subject to disclosure.

Accordingly, the Amendment prescribes that providers of marine transportation services that belong to a business group subject to pulbic disclosure may receive an order of improvement for its services or be restricted from entering into contracts for a marine transportation brokerage business or marine freight transportation brokerage business with any affiliate belonging to the same business group for a specified period of up to 6 months. It also prescribes that any marine transportation broker or marine freight transportation broker who has committed a prohibited act specified in the Monopoly Regulation and Fair Trade Act shall be reported (Article 2, subparagraphs 1 and 5-2; Article 31-2; Article 57-2, subparagraph 3).

Prescribe that where deemed necessary to promote third-party logistics, ensure mutual growth of large and small to medium enterprises, and establish sound trading practices, the Minister of Oceans and Fisheries may, as specified by Presidential Decree, order providers of marine transportation services belonging to a business group subject to disclosure designated under Article 14, paragraph 1 of the Monopoly Regulation and Fair Trade Act to improve its services or restrict it from entering into contracts for a marine transportation brokerage business or marine freight transportation brokerage business with any affiliate belonging to the same business group for a specified period of up to 6 months; and that any person who fails to comply with such an order shall be punishable by a fine (Article 31-2; Article 57-2, paragraph 3)