Sogongyeon Urges Regulation of Food Ingredient Marts... "Abuse of Power Such as Forced Supply and Demands for Bribes"

"Calls for Regulation of Food Material Marts"
United Voices Demand Institutional Improvements

On the 9th, the Korea Federation of Small and Medium Business held a forum titled "Problems and Improvement Measures in the Regulatory Blind Spots of Food Material Marts" at the 5th Conference Room of the National Assembly Members' Office Building, together with the Democratic Party of Korea's National Small Business Committee and others, and announced on the 10th that they discussed the necessity of regulation and institutional improvement measures for food material marts.

The forum was jointly hosted by Assemblyman Oh Se-hee, chairman of the Democratic Party of Korea's National Small Business Committee, and the Korea Federation of Small and Medium Business, with participation from related industry and government officials who exchanged diverse opinions on the harms caused by food material marts and directions for legal amendments.

Assemblyman Oh, who presided over the discussion, said in his opening remarks, "The growth of food material marts involved regulatory blind spots and the tears of suppliers," adding, "Due to insufficient regulations and systems, we will closely examine fair distribution order to correct the tilted playing field."

In response, Song Chi-young, president of the Korea Federation of Small and Medium Business, emphasized, "Food material marts have become a massive black hole that sucks capital from local communities," and stressed, "Regulation of food material marts is essential to restore a healthy distribution ecosystem."

Participants of the discussion on "Problems and Improvement Measures in the Regulatory Blind Spots of Food Material Marts," held on the 9th at the 5th Meeting Room of the National Assembly Members' Office Building, are taking a commemorative photo. Small Business Association

In the subsequent presentations and discussions, small business owners from various industries directly exposed the various abuses and tyranny of food material marts. Kang Jong-sung, president of the Korea Egg Industry Association, raised his voice, saying, "They are making suppliers cry with all kinds of abuses such as demanding tens of millions of won in entry fees, exclusive supply demands, and bribe requests from store managers."

The urgency of institutional response was also emphasized. Song Yoo-kyung, president of the Korea Supermarket Cooperative Federation, urged the amendment of related laws, stating, "Food material marts are not subject to the Distribution Industry Development Act's regulations, and neighborhood supermarkets are taking a direct hit." Cha Nam-soo, head of policy promotion at the Korea Federation of Small and Medium Business, said, "Food material marts are not subject to the Distribution Industry Development Act and the Large-scale Distribution Business Act, so they are not required to designate two mandatory closing days per month," and stressed, "The related laws should be promptly processed in the 22nd National Assembly."

The government side also expressed willingness to respond to these field difficulties. Sung Si-nae, director of the Distribution and Logistics Division at the Ministry of Trade, Industry and Energy, stated, "We will strictly deal with illegal and irregular operations such as splitting of food material marts in cooperation with local governments."

Kim Tae-gyun, director of the Distribution Agency Policy Division at the Fair Trade Commission, also said, "Even if a company falls short of the Large-scale Distribution Business Act, regulations can be imposed on unfair transactions by food material marts against suppliers, so we will work on raising awareness for institutional improvement."