Fair Trade Commission Investigates Dealership Transactions in 'Machinery, Feed, Household Goods, Liquor, Paint, Cosmetics' Sectors

Standard Contracts Reflecting Industry-Specific Transaction Realities to Be Distributed

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission announced on the 28th that, together with the Korea Development Institute (KDI), it will conduct a "Written Survey on Industry-Specific Agency Transactions" targeting six industries?machinery, feed, daily necessities, alcoholic beverages, paint, and cosmetics?until August 23.

Through this survey, they plan to identify the basic aspects of agency transactions by industry, such as exclusive and non-exclusive agreements, resale and consignment sales, contract, order, return, and settlement methods, and price determination structures, as well as experiences of unfair trade practices, difficulties, and areas needing improvement.

The survey will primarily be conducted through KDI’s on-site visits to capture more vivid voices from the field, along with web-based surveys via PC and mobile.

Since 2018, agency transaction surveys have been conducted in 12 industries including clothing, food and beverages, telecommunications, automobile sales, furniture, and home appliances. Accordingly, standard agency contracts have been prepared for each industry.

A Fair Trade Commission official stated, "The results of the survey will be analyzed reflecting the market conditions of each industry, and the findings will be announced twice in October and November. We plan to prepare standard agency contracts within this year, which will serve as exemplary guidelines for contracts between suppliers and agencies, to effectively help eradicate unfair trade practices in agency transactions."