SEOUL, May 22 (Korea Bizwire) – The Fair Trade Commission will abolish all 18 regulatory guidelines that may restrict business activities until the end of the third quarter, at which time new bakeries can be set up within the distance of 500 meters from an existing one.
On May 21, the competition authorities said that its “recommendations” included provisions that may be interpreted as mandatory and it would eliminate all these recommendations and replace in some cases with more specific rules and ordinances.
The most prominent guideline to disappear is the one related to bakeries, fried chicken restaurants, coffee shops, and convenience stores. The current guideline stipulates that no new establishment be open within 500 meters for bakery and coffee businesses, 800 meters for chicken purveyors, and 250 meters for convenience store operators.The commission said the guideline is no longer needed as the franchise law that can protect existing merchants from encroachment has been revised.
In addition, the monopoly watchdog will put an end to a regulation on talent management firms restricting their business activities with entertainers including the signing of contracts with unfair provisions to the entertainers. The commission said the regulation would be adequately replaced with the fair-contract provisions in the law on popular culture industry development to be in effect from July this year.
The five guidelines regarding subcontracting practices will be switched to more binding rules as they are deemed indispensable for the enforcement of the commission’s power.
Other consumer protection guidelines related to layaway arrangements and commercial activities of online blogs and bulletin boards will be transferred to installment payment laws and e-commercial consumer protection laws, respectively.
Fair Trade Commission director responsible for competitive policiesKim Sung-ha said, “We decided to abolish guidelines that are not in steps with the current business practice or hinder business activities. Instead of a system in which everything must be permitted by the authorities, we hope to replace it with one in which what’s not permitted are regulated.”
Written by Sean Chung (email@example.com)