Jong-sung Wook, Chairman of the Fair Trade Commission, "Will Create Internal Coordination Guidelines for Conflicts in the Franchise Sector"

Jongwook Cho, Chairman of the Korea Fair Trade Commission (right), visited a Paris Baguette near Jungangno Station in Jung-gu, Daejeon on the 18th to check on the difficulties faced by franchise owners struggling due to COVID-19 and the business conditions of the franchise stores.

[Daejeon=Asia Economy Reporter Joo Sang-don] Cho Sung-wook, Chairman of the Fair Trade Commission, said on the 18th, "We plan to create and spread guidelines that can internally mediate conflicts between franchise headquarters and franchisees."

On this day, Chairman Cho made these remarks during a meeting with reporters after visiting three franchise stores located in the 'Euneungjeongi' cultural street near Jungangno Station in Jung-gu, Daejeon.

Chairman Cho explained, "Because problems cannot be resolved internally, complaints are reported to the Fair Trade Commission or franchisees raise issues externally. In such cases, various negative side effects may occur. The internal conflict mediation guidelines are intended for headquarters to first try to mediate with franchisees before disputes become public." To this end, the Fair Trade Commission plans to study companies that operate exemplary internal dispute procedures and create model guidelines based on this to present to the industry.

Chairman Cho is scheduled to visit manufacturing companies early next week that are experiencing difficulties procuring parts from China due to the impact of COVID-19. He said, "We plan to meet with large corporations and their related partner companies to understand the difficulties and problems on both sides," adding, "This is to identify what efforts can be made for mutual growth between large corporations and their partners and how the Fair Trade Commission can support these efforts." However, he did not disclose specific company names.

On this day, Chairman Cho visited Paris Baguette, Innisfree, and Mapo Galmaegi to check on COVID-19 related prevention measures and promotional events. Paris Baguette, which previously only supplied factory-manufactured finished products, has now strengthened hygiene management by individually packaging products made in stores. They have also provided hand sanitizers for customers and made it mandatory for store employees to wear masks and use disinfectants to prevent and curb the spread of COVID-19. Innisfree extended discount periods to recover sales, increased the headquarters' share of promotional event costs, distributed store hygiene guides, and supported hand sanitizers and masks. Mapo Galmaegi is making efforts to preserve franchisees' profits by thoroughly managing hygiene and adjusting price increases of major food ingredients when necessary.

At the event, Chairman Cho stated, "We will prioritize handling disputes in the franchise sector related to COVID-19 to ensure prompt relief for franchisees," and urged, "Headquarters and franchisees should work together to minimize damage and restore sales to normal."