Reasons for Proposal
Demand for various household logistics services unlike traditional business-to-business logistics services has increased, as evidenced by the increase in size of delivery markets such as parcel delivery, etc., from 2.4 trillion won in 2008 to 5.2 trillion won in 2017 with an average annual growth rate of 9.1% due to the growth of electronic commerce, etc.
Therefore, there is an urgent need to improve the quality of such fast-growing household logistics services and to systematically nurture and develop this industry.
The sole system regarding land cargo transport, the Trucking Transport Business Act, is focused on regulating supply, transport, and intermediation of vehicles, such that there is difficulty in using this Act to regulate not just vehicles used in transport, but also matters regarding parcel delivery services which require systematic structures such as information networks and facilities, etc., for prompt categorization and delivery of goods.
In addition, given the fact that the delivery-by-proxy service is an industry with high growth potential due to the emergence of platform technology and new transport methods such as drones, there is a need to introduce support systems such as certification systems to enable businesses with high service quality and good working conditions to lead such market growth.
Therefore, this proposal aims to prescribe systems for development of the household logistics service industry such as parcel delivery and delivery-by-proxy, matters regarding enhancement of rights and benefits and protection of safety of industry workers, and devices for protecting consumers, thereby contributing to enhanced public convenience and national economic development.
Details
A. Introduction of Registration System for Parcel Delivery Service Business (Articles 5 and 6)
A person who wishes to engage in parcel delivery business shall obtain permission for trucking transport services according to the Trucking Transport Business Act, register with the Minister of Land, Infrastructure and Transport according to criteria such as facility, equipment or business office, and periodically report matters regarding registration criteria such that persons with necessary requirements and qualifications are conducting parcel delivery service businesses.
B. Entrustment of Work by Parcel Delivery Service Business and Management of Business Office (Articles 7 through 9)
A parcel delivery service business may entrust necessary work to a business office or a parcel delivery service worker for business efficiency, and in such case, shall be jointly liable for damage, be responsible for directing and supervising such work, and terminate entrustment contracts with business offices vulnerable to industrial accidents.
C. Promotion of Stable Contractual Relationship between Parcel Delivery Service Business and Worker (Articles 10 and 11)
A parcel delivery service worker, in its contractual relationship with a parcel delivery service business, shall be ensured a right to renew its contract on entrustment of parcel delivery service for six (6) years, and in case a parcel delivery service business wishes to terminate such contract, the business shall provide no less than two (2) prior notices clearly stating the facts regarding the worker’s violation of the contract.
D. Regulation of Parcel Delivery Driver Qualifications (Article 13)
In order to ensure that parcel delivery vehicles are safety operated, the qualifications and grounds for disqualification of parcel delivery drivers shall comply with the qualifications for truck drivers in the Trucking Transport Business Act, and, to preserve order in the trucking transport market, a parcel delivery driver who wishes to conduct parcel delivery through an entrustment contract with a business shall also receive permission for trucking transport services according to the same Act.
E. Special Cases in Increasing the Number of Trucks and Sanctions Against Businesses Lacking in Safety (Article 14)
In the case of a parcel delivery service business increasing the number of trucks on the condition that it directly employs a parcel delivery service worker, the supply criteria according to the Trucking Transport Business Act shall not apply, and in the case of a business promulgated as a business vulnerable to industrial accidents according to the Occupational Safety and Health Act, it shall be limited from entering into contracts for entrustment of parcel transport within a three (3) year range.
F. Limitation on Transport of Other Cargo by Parcel Delivery Trucks (Article 15)
In order to prevent a disturbance in the general trucking business due to an increase in the number of parcel delivery trucks, a parcel delivery service worker shall not use a truck permitted for use in parcel delivery service business to transport cargo that is not a parcel for compensation, and a parcel delivery service business and business office shall be responsible for providing direction and supervision regarding such matters.
G. Introduction of Certification for Small Parcel Delivery-by-Proxy Service Business (Articles 19 through 26)
In the case of a qualified person with information and communication network and mode of transport such as a two-wheeled vehicle, drone, etc., who meets the certification criteria regarding safe operation by workers, securing of consumer protection devices, etc., applies for certification as a small parcel delivery-by-proxy service business, the Minister of Land, Infrastructure and Transport shall provide such certification through a certification evaluation agency.
H. Establishment of a Basic Plan for Household Logistics Service Industry Development (Article 27)
The Minister of Land, Infrastructure and Transport shall set the basic direction of policies for household logistics service industry development, and establish a basic plan for household logistics service industry development through deliberation of the national logistics policy committee every five (5) years, to enable systematic pursuit of industry growth, promotion of research and development, expansion of facilities and equipment, promotion of employment and business establishment, etc.
I. Provision of Grounds for Build-up of Basic Materials (Articles 29 and 30)
The Minister of Land, Infrastructure and Transport shall conduct field investigations and prepare statistics to secure basic materials and build-up statistics required in household logistics service industry development, and may collect information necessary in establishing policies, etc.
J. Provision of Grounds for State and Local Government Support (Articles 31 and 32)
The State and local government may, for household logistics industry development, provide financial, administrative, and fiscal support regarding expansion or improvement of facilities or equipment, installation of safety facilities for workers, research and development, consultation on achieving efficiency, education, etc., and may provide tax benefits for household logistics service businesses according to relevant tax laws.
