ACT ON FAIR TRANSACTIONS IN LARGE RETAIL BUSINESS

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to contribute to the balanced national economic growth and development by maintaining fair transactional order in the large retail business and by enabling large retail business entities, suppliers, or sales floor tenants to prosper on an equal footing in a complementary relationship.

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Oct. 16, 2018>

1. The term "large retail business entity" means any of the following persons (including "franchisers" defined in subparagraph 2 of Article 2 of the Fair Transactions in Franchise Business Act), who source goods used by consumers from multiple business entities and sell them:

(a) A person whose retail sales for the immediately preceding business year are at least 100 billion won (for business entities recognizing revenues by a net method under the corporate accounting standards, "retail sales" refers to the total sales and, for franchisers, the sum of retail sales and sales of goods sold to franchisees; provided, where business period in the immediately preceding business year is less than a year, "retail sales" refers to an amount converted from the revenues in the relevant period to 12-month period; hereinafter the same shall apply);

(b) A person who uses any store, at which the total area of sales floors (referring to the sum of the area calculated by multiplying the floor space of each sales floor by 95/100; hereinafter the same shall apply) is at least 3,000 square meters, for retail business;

2. The term "supplier" means, irrespective of the type of transaction, a person who supplies goods to large retail business entities so that they would sell such goods (including cases of directly supplying consumers with goods having been sold by a large retail business entity);

3. The term "sales floor tenant" means a person engaged in a business in which he or she rents part of a sales floor from a large retail business entity, sells goods to be used by consumers using such sales floor and pays the price to the large retail business entity;

4. The term "direct purchase" means a transaction in which a large retail business entity purchases goods from a supplier and takes responsibility for the sale of unsold goods among the goods he or she has purchased;

ACT ON FAIR TRANSACTIONS IN LARGE RETAIL BUSINESS

Article 1(Purpose) #

Article 2(Definitions) #

Article 2-2(Legal Fiction as Large Retail Business Entities) #

Article 3(Exclusion from Application) #

Article 4(Relationship to Other Statutes) #

Article 5(Principle of Good Faith) #

Article 6(Delivery and Retention of Documents) #

Article 6-2(Standard Form Trade Contract) #

Article 7(Prohibition of Reduction in Payment of Goods) #

Article 8(Payment of Proceeds from Sale) #

Article 9(Prohibition of Refusal or Delay of Receipt of Goods) #

Article 10(Prohibition of Return of Goods) #

Article 11(Prohibition on Unjustly Shifting Burden of Sales Promotional Expenses) #

Article 12(Prohibition against Using Employees by Suppliers) #

Article 13(Prohibition of Forcing Exclusive Dealing) #

Article 14(Prohibition of Request for Management Information) #

Article 14-2(Prohibition on Interference with Management Activities) #

Article 15(Prohibition of Requests for Economic Profits) #

Article 15-2(Prohibition against Undue Restrictions on Business Hours) #

Article 16(Compensation for Costs of Equipment for Sales Floor) #

Article 17(Prohibition against Giving Disadvantages) #

Article 18(Prohibition against Retaliatory Measures) #

Article 19(Concluding Agreements among Large Retail Business Entities and Suppliers) #

Article 20(Establishment and Organization of Dispute Settlement Council) #

Article 21(Restrictions on Persons Commissioned for Membership Representing Public Interest) #

Article 22(Meetings of Council) #

Article 23(Exclusion, Challenge, and Recusal of Members) #

Article 24(Matters to Be Mediated by Council) #

Article 25(Request for Mediation) #

Article 26(Mediation) #

Article 26-2(Relationship to Lawsuits) #

Article 27(Preparation and Validity of Mediation Protocol) #

Article 28(Organization and Operation of Council) #

Article 29(Investigation of Violations) #

Article 29-2(Payment of Monetary Awards) #

Article 29-3(Recovery of Monetary Awards) #

Article 30(Documentary Inspection of Actual Condition) #

Article 31(Restrictions on Disposition Imposed on Violations) #

Article 32(Corrective Orders) #

Article 33(Recommendation for Corrective Measures) #

Article 34(Deposits) #

Article 34-2(Consent Resolutions) #

Article 34-3(Procedures for and Revocation of Consent Resolutions) #

Article 34-4(Charges for Compelling Compliance) #

Article 35(Penalty Surcharges) #

Article 35-2(Liability for Damages) #

Article 36(Timing for Judgment on Violations) #

Article 37(Cooperation from Heads of Relevant Administrative Agencies) #

Article 38(Mutatis Mutandis Application of the Monopoly Regulation and Fair Trade Act) #

Article 39(Penalty Provisions) #

Article 40(Joint Penalty Provisions) #

Article 41(Administrative Fines) #

Article 42(Complaints) #