The Korea Fair Trade Commission said on the 8th that it will conduct a written fact-finding survey on overall transactions in the distribution and agency sectors to establish policies suited to on-the-ground conditions.
In the distribution sector, 7,600 suppliers and tenant companies that transact with nine business types, including department stores, big-box retailers, and online shopping malls, are those surveyed. In the agency sector, 521 suppliers and 50,000 agencies in 22 industries, including food and beverages, apparel, and telecommunications, are those surveyed. The survey period covers last year, and the written fact-finding survey will run through September.
The Korea Fair Trade Commission (FTC) has been conducting written fact-finding surveys in the distribution and agency sectors every year to improve unfair practices in the industry. This year is a continuation of that effort, but the difference from past surveys is the addition of new survey items. To identify differences in bargaining power arising from hierarchical relationships—such as large-scale distributors versus suppliers and tenant companies, and agency headquarters versus suppliers and agency owners—the FTC plans to examine the degree of transaction partner diversification. It also plans to look into transaction concentration and the operating profit margins of the less powerful parties.
The written fact-finding survey in the distribution sector will check for blind spots in the protection of suppliers. As the distribution market has recently shifted to an online focus, new unfair transaction practices may emerge. The written fact-finding survey in the agency sector will add the construction materials industry. This is because transactions related to construction materials, such as reconstruction and redevelopment, are expected to increase. Last year, 21 industries were surveyed; this year, with the addition of construction materials, the scope expands to 22.
The Korea Fair Trade Commission (FTC) said, "We will analyze the results of the fact-finding survey and announce them in November," adding, "We will use them broadly as basic materials for tasks such as identifying institutional improvements, expanding the use of standard contracts, and drawing up plans for ex officio investigations."