skip to main contents skip to main menu

National Assembly Legislation

  • Distribution Industry Development Act
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation : 2020-06-23
    • Opinion Submission Deadline : 2020-07-07
Reasons for Proposal

Korea's distribution industry has developed overall, with the rapid growth of superstores first introduced in 1993 and the expansion of super supermarkets since 2008, but there is also a side effect that imposes difficulties on small merchants and traditional markets that share a commercial district with them in a region.

Therefore, to protect traditional markets and small merchants, promote win-win development for both superstores and the small- and medium-sized distributors, and vitalize local commercial areas, regulations on superstores, etc., have been introduced through amendments to the Act since 2010.

However, although self-employed and micro-enterprises are the props that support the basis of the ordinary people’s economy, since their damages and conflicts due to the advancement into local commercial areas of superstores, etc. still exist, the legislative purpose to contribute to the balanced development of the distribution industry through the protection of small- and medium-sized distributors, such as local commercial areas and traditional markets, is still not achieved.

Accordingly, to continue the promotion of balanced development policies for both superstores and the small- and medium-sized distributors, and to protect nearby small merchants and traditional market merchants from the opening of superstores and quasi-superstores, this amendment aims to address those matters not addressed by the legislation.

Details

A. To prevent poor regional cooperation plans submitted upon the registration of a superstore, etc., change the current “distribution industry coexisting development council” to the “distribution industry coexisting development review council” (hereinafter referred to as the “development review council”), and require the development review council to deliberate on regional cooperation plans, etc., and cancel the registration if the deliberation is rejected (Article 7-5, Article 8 (7), and Article 11 (1) 2-2 newly inserted) 

B. To enhance the objectivity of the evaluation and inspection of the implementation performance of regional cooperation plans and the implementation performance after the beginning of the business of a superstore, etc., make the content of the regional cooperation plan more specific, and the development review council regularly evaluate and inspect implementation outcomes, and disclose them (Article 8-2). 

C. If a superstore, etc., does not fulfill the improvement recommendations and compliance orders of the head of a local government in accordance with the results of evaluation/inspection on the implementation performance of the regional cooperation plan by the development review council even after receiving them, impose compulsory charges to secure their effectiveness (Article 8-3 newly inserted) 

D. Since it is necessary to continue the promotion of balanced development between superstores, etc., and small- and medium-sized distributors and operate the system related to traditional commerce preservation areas and quasi-superstores as per current provisions, extend the duration of the related provisions for additional 5 years (Article 48-2). 


Major Provisions

Compulsory charges (Article 8-3)

Go to the Bill