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  • Living Logistics Service Industry Development Act
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2021-08-26
    • Opinion Submission Deadline : 2021-09-09
Reasons for Proposal

1. Reason for proposal

The National Assembly classified a new type of logistics that is rapidly expanding with the development of e-commerce into living logistics service in 2021 and established the Living Logistics Service Industry Development Act in order to systematize the improvement of rights and interests of employees and safety strengthening as well as the improvement of service quality and cultivation and development of industries.

  Meanwhile, according to the established current Act, as the delivery service business is regulated with the registration system and the small parcel delivery service business is regulated by the certification system, it is pointed out that the protection of employees and improvement of service quality are basically limited.

  Moreover, adequate delivery fee is not guaranteed for the employees due to excessive competition among delivery business operators; as a result, the life and traffic safety of delivery workers are threatened by long-time work hours, over speed, etc., and service quality deteriorates; in order to avoid this situation, an adequate level of charge shall be guaranteed; in the case of business operators who provide delivery service through platforms using information and communication network, the dispatch method, delivery time limit, evaluation system, etc. are controlled by programs, and delivery workers may have risk of accidents and disadvantage.

Therefore, the aim is to guarantee the health and safety of delivery workers through the implementation of a registration system with the application of a certain level of condition to secure the safety of delivery workers of small parcel delivery service business and assignment of the corresponding liability and by setting the delivery fee at an adequate level for safe delivery through interested parties.

 

2. Main content

A. Small parcel delivery service business is defined as direct delivery using two-wheeled vehicles and as the business of cargo delivery through the use and combination of electronic communication network and information and communication network (Article 2, Subparagraph 3, Item B of the draft).

B. A person who intends to operate a small parcel delivery service business by using and combining information communication network or intelligent information technology shall be registered by the Minister of Land, Infrastructure and Transport upon satisfaction of the condition decided by the Presidential Decree (Article 17 of the draft).

C. Small parcel delivery service business operators have the liability to confirm the qualification and licenses of their employers, observe matters including education, etc. needed for safe operation, and manage the matters to be observed by business consignment sales offices (Articles 18.1 and 18.2 of the draft).

D. Small parcel delivery service business operators who perform cargo delivery with the use of intelligent information technology shall observe the matters below (Articles 18.3 through 18.5 of the draft).

  1) If small parcel delivery service workers ask for explanation or conclusion of delivery work contracts, the business operators shall explain the details of the dispatch method of intelligent information technology, delivery time limit, standard for operation of evaluation system, etc. (Article 18(3) of the draft).

  2) If small parcel delivery service workers set obligations due to unfair dispatch method of intelligent information technology and ask for the adjustment of the standard, the business operators shall have discussions on the adjustment of the condition (Article 18(4) of the draft).

  3) If small parcel delivery service business workers ask to prove matters on delivery careers, configuration of delivery fee, details of payment, etc., the business operators shall supply them with the corresponding information (Article 18(5) of the draft).

E. In order to protect living logistics service workers and secure traffic safety, the safety delivery fee of living logistics service shall be determined (Article 2, Subparagraph 8, Articles 19-3 through 19-6 of the draft).

  1) Safety delivery fee is defined as the minimum delivery fee to be paid to workers in order to prevent overwork, over-speed, over-loaded operation, etc. and secure traffic safety (Article 2, Subparagraph 8 of the draft).

  2) A safety delivery fee committee consisting of interested parties including business operators and workers, etc. shall be organized to determine the safety delivery fee of living logistics service (Article 19-3 of the draft).

  3) The safety delivery fee of living logistics service shall be determined in integrated consideration of costs, such as maintenance, management, and operation costs of transportation means and labor costs of workers, delivery quantity of workers per hour, rest and waiting hours, levels of labor costs of similar industrial workers, etc. (Article 19-4 of the draft).

  4) The safety delivery fee of living logistics service for the following year shall be reviewed, determined, and notified until October 31 every year, and a delivery fee not less than the notified safety delivery fee shall be paid to workers (Article 19-5 of the draft).

5) The Minister of Land, Infrastructure and Transport shall establish and operate a safety delivery fee report center so that payment of delivery fee less than the safety delivery fee or collection of money by unlawful methods such as rebate may be reported (Article 19-6 of the draft).


Major Provisions

Article 17 and Article 18 of draft


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