Reasons for Proposal
As the marine transportation industry is a key player for the country's export, the third-party logistics market must be expanded to strenghten international competitiveness and reduce logistics cost. However, Korea’s use of third-party logistics is relatively low compared to leading nations.
In particular, logistics enterprises belonging to conglomerates are negatively impacting the marine cargo transportation market by funneling work to their affiliates, and are also involved in unfair practices in regard to freight rates for small and medium-sized cargo transportation service providers. This is hindering the development of the third-party logistics industry, as well as significantly weakening the overall competitiveness of Korea’s logistics industry.
Accordingly, this Amendment seeks to preclude any company belonging to enterprise group subject to limitations on mutual investment that is a marine cargo transportation service provider or a marine transportation brokerage business which has been publicly designated and notified by the Minister of Oceans and Fisheries from concluding or brokering marine transportation brokerage contracts, etc., with any affiliate belonging to the same business group if the ratio of such contracts is higher than or equal to the ratio prescribed by Presidential Decree (Article 31-2 newly inserted).
Major Provisions
Article 31-2(Restrictions, etc., on conclusion of contracts for a company belonging to enterprise group subject to limitations on mutual investment) Pursuant to Article 14, paragraph 1 of Monopoly Regulation and Fair Trade Act, any company belonging to enterprise group subject to limitations on mutual investment that is a marine cargo transportation service provider or a marine transportation brokerage business which has been publicly designated and notified by the Minister of Oceans and Fisheries shall not conclude marine transportation brokerage contracts etc., with any affiliate belonging to the same business group if the ratio of such contracts is higher than or equal to the ratio prescribed by Presidential Decree.
