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  • Distribution Industry Development Act
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation : 2020-12-08
    • Opinion Submission Deadline : 2020-12-22
Reasons for Proposal

The current Act stipulates that a person who intends to open a superstore or open a quasi-superstore in a traditional commerce preservation area shall submit a report indicating the results of an impact evaluation of the affected business districts and a regional cooperation plan to the Mayor of the Special Self-governing City or the head of the relevant si/gun/gu prior to commencing his or her business, and that the Mayor of a Special Self-Governing City or the head of a Si/Gun/Gu may investigate the progress in implementing such a regional cooperation plan and recommend improvement when the progress is deemed insufficient.

However, public confidence may be questioned as the business owner is allowed to fill out the report on the impact evaluation of business districts him/herself, and it is not effective since, even if he/she fails to implement the details provided under the regional cooperation plan after opening the store, no sanction is imposed. 

In addition, the current Act stipulates that fact-finding surveys on the distribution industry may be conducted to efficiently develop and implement a master plan and action plan for development of the distribution industry, but the scope of the fact-finding survey is set out under the Enforcement Decree, thereby undermining its clarity. 

Therefore, the Amendment aims to promote the development of the distribution industry through legislative supplementation.

Details

A. Specify the scope of the fact-finding survey in the Act (Article 7-4).

B. Mandate a person who intends to open a superstore or open a quasi-superstore in a traditional commerce preservation area to commission an agency set forth under the Presidential Decree to create and submit the report on impact evaluation of business districts (Article 8 (1)).

C. Mandate the head of a local government to inspect the performance of the regional cooperation plan and report the results thereof to the Minister of Trade, Industry, and Energy for evaluation, and allow the head of a local government to issue recommendations for improvement, publish recommended targets and details of recommendations, implementation order, and enforcement fine in this order, if the implementation performance is deemed unsatisfactory (Articles 8-2 and 8-3 newly inserted). 


Major Provisions

Articles 8, 8-2, and 8-3

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