The chief of South Korea's corporate watchdog said Wednesday that business cooperation between retailers and their suppliers is critical if all sides want to stay competitive.
"Retailers and their suppliers should seek cooperation for growth and their survival," Fair Trade Commission Chairman Kim Sang-jo said in a meeting with representatives from the local retail and distribution industries.
The FTC chief also urged retailers to continue their reforms to root out unfair business practices and strengthen consumer protection.
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Fair Trade Commission Chairman Kim Sang-jo (Yonhap) |
In September this year, the FTC unveiled a plan to impose punitive damages of up to three times the actual losses incurred against illegal business practices that occur between large shopping mall operators and small shops, such as unfair payment and returns, and cutting back supplied goods.
The corporate watchdog said earlier it will also toughen administrative sanctions against unfair practices and revise public disclosure guidelines on sales commission rates.
The South Korean retail industry is currently dominated by mega-sized retailers, department stores and discount outlets.
Big-name retail giants, such as Lotte, Shinsegae and Hyundai Department Store, take up the bulk of the market share and wield great influence over the entire industry.
Since his inauguration in June, Kim, a renowned civic activist who has advocated minor shareholders' rights, has placed the biggest policy priority on fair competition. (Yonhap)
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