This article was published on Sept. 1, 2025, at 6 p.m. on the ChosunBiz RM report site.
Traditional retailers such as department stores and large supermarkets will shorten the payment settlement period for vendors. Discussions about the payment deadline for online intermediaries began following last year's large-scale unsettled sales amounts with TMON and WeMakePrice, prompting traditional retailers to also shorten their payment deadlines. The Fair Trade Commission, which completed a written investigation into related businesses, has begun work on revising the relevant laws.
According to competition authorities on the 2nd, the Fair Trade Commission is preparing a revision bill for the 'Act on Fair Transactions in Large-Scale Distribution (Large-Scale Distribution Act)' that focuses on reducing the payment deadlines for traditional retailers. The aim is to ensure that businesses selling goods through retailers receive timely settlements and to assist with their smooth financing.
Since February of this year, the Fair Trade Commission has investigated the payment practices and procedures of 11 sectors, including department stores, duty-free shops, TV home shopping, large supermarkets, and convenience stores, totaling 139 distribution brands. Initially, the results of the investigation were scheduled to be announced in May, but they have not been made public as of now. The Fair Trade Commission is planning to release the investigation results along with the announcement of the revision bill.
The revision bill that advances the payment settlement period for online intermediaries has already been proposed in the National Assembly. The proposal was initiated because unsettled and unpaid amounts piled up in the trillions of won due to the TMON and WeMakePrice cases, which underwent corporate rehabilitation. The Fair Trade Commission's plan is to bridge this regulatory gap.
The revision states that the payment settlement period for online intermediaries should be within 20 days from the date the consumer confirms their purchase. The payment deadline that the Fair Trade Commission is preparing for traditional retailers is expected to be set slightly longer than that for online intermediaries.
The Fair Trade Commission believes that traditional retailers like department stores and supermarkets cannot apply the same deadline as online intermediaries due to their higher inventory burdens. Therefore, while the payment deadlines for these retailers will be shortened from the current 60 days (40 days for special purchase agreements), they will likely be decided at a point longer than 20 days. A Fair Trade Commission official noted, "It may be unreasonable to apply the same payment deadline for traditional retailers as for online intermediaries," adding, "We are collecting industry opinions to determine an appropriate deadline."
However, the traditional retail industry is expressing difficulties regarding the Fair Trade Commission's movements. A person in the retail sector said, "Currently, the payment deadline is 60 days, so there are no issues with selling goods and making payments within this period," and added, "If this period is shortened, there may be issues with settlements needing to occur before goods are sold."
Another official also stated, "As the speed of fund execution increases, there may be operational burdens." However, he added, "In the long term, it will strengthen the cooperative structure with partners."
Meanwhile, the Large-Scale Distribution Act, which reduces the payment deadline for online intermediaries to 20 days, has only passed through the subcommittee of the National Policy Committee, which is the committee in charge. To actually be implemented, it must pass through the Legislation and Judiciary Committee's system and wording review as well as the main assembly's deliberation.