Fair Trade Commission to Prevent 'Head Office Power Abuse'... Pilot Operation of Agency Support Center

Han Ki-jung, the newly appointed Chairman of the Fair Trade Commission, delivering a greeting
(Sejong=Yonhap News) Reporter Kim Joo-hyung = Han Ki-jung, the newly appointed Chairman of the Fair Trade Commission, is delivering a greeting on the morning of the 19th at the Government Complex Sejong in Sejong City before a meeting with the press corps. 2022.9.19
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The Fair Trade Commission's Franchise Comprehensive Support Center has entered a pilot operation phase.

The Fair Trade Commission announced that it will begin pilot operation of the Franchise Support Center starting on the 26th. Earlier, in July, the Fair Trade Commission held a public contest to select the institution for the Franchise Support Center and ultimately designated the Korea Fair Trade Mediation Agency. The Franchise Support Center plans to undergo about six months of pilot operation and then fully launch early next year.

The Franchise Support Center is an institution aimed at resolving disputes between headquarters and franchises. It provides comprehensive support measures to address difficulties faced by franchises, such as forced purchase and sales targets by headquarters and interference in management activities. Specifically, to prevent and remedy franchise damages, it offers contract review consultations and dispute resolution counseling services when franchise contracts are signed. Starting from the first half of next year, the center plans to regularly operate consultative bodies between suppliers and franchises to prevent worsening conflicts between headquarters and franchises.

From next year, when the center is fully operational, it will also support lawsuits for small-scale franchises. The Franchise Support Center intends to actively support the legal rights of franchises that suffer damages due to headquarters' faults by providing legal consultation through lawyers. For franchises that are reluctant to file lawsuits due to lack of legal knowledge and the burden of litigation costs, the center will also provide various legal services such as litigation representation and drafting of complaints.

Fair trade education targeting headquarters will also be strengthened. This is based on the judgment that some headquarters lack understanding of laws and policies and thus fail to break away from unfair trade practices. Accordingly, the Franchise Support Center plans to prepare educational programs for headquarters to prevent violations of the Fair Trade Act in advance.

A Fair Trade Commission official said, "The Franchise Support Center will closely support small and medium-sized franchises," adding, "It is expected to serve as a channel to vividly convey field voices necessary for promoting policies related to franchise transactions."