Korea Federation of SMEs Holds 'Fair Trade Dispute Mediation Act Amendment Discussion Forum'

The Korea Federation of Small and Medium Business (Kbiz) announced on the 28th that it held a "Fair Trade Dispute Mediation Act Supplementary Tasks Forum" at the Kbiz headquarters in Yeouido.

This forum was organized to discuss effective legislative supplement directions to resolve chronic difficulties faced by small and medium enterprises (SMEs), such as collective disputes with large corporations supplying raw materials, in relation to the Fair Trade Dispute Mediation Act currently being legislated by the Fair Trade Commission.

Professor Yoo Young-guk of Hanshin University’s College of Peace and Liberal Arts, who presented at the forum, stated, “For the dispute mediation system to function as a practical dispute resolution method in the field, it is essential to supplement the Fair Trade Dispute Mediation Act. Considering that the collective dispute mediation system was introduced in the Act on Terms and Conditions in 2012 but there have been no cases so far, the scope of applicants for collective dispute mediation, currently limited to the Fair Trade Commission and the parties involved, should be expanded to include SME cooperatives and the Korea Federation of Small and Medium Business.”

He also argued, “Since the bill does not include provisions to compel the participation of dispute parties in mediation, if the respondent does not voluntarily participate, dispute mediation itself becomes impossible. Therefore, a mandatory participation clause for dispute parties in dispute mediation should be newly established.”

Following the presentation, a panel discussion chaired by Professor Lee Bong-ui of Seoul National University School of Law was held, with panelists including Professor Park Se-hwan of University of Seoul School of Law, Attorney Kim Nam-joo of Dodam Law Firm, Yang Chan-hoe, Head of Innovation Growth Division at Kbiz, Park Mi-young, Legislative Research Officer at the National Assembly Legislative Research Office, and Hong Hyung-joo, Competition Policy Director at the Fair Trade Commission, who offered various suggestions for supplementing the Fair Trade Dispute Mediation Act.

Yang Chan-hoe, Head of Innovation Growth Division at Kbiz, said, “Considering the ongoing collective conflicts between large corporations supplying raw materials such as cement, paper, and plastics and the demand-side SMEs, it is fortunate that the enactment of the Fair Trade Dispute Mediation Act includes provisions for collective dispute mediation. We hope that opening the way for cooperatives and others to participate as applicants in collective disputes will greatly assist SMEs, which are at a disadvantage in negotiation power.”