Government Aims to Eradicate “Power Imbalance” Within the Logistics Industry | Be Korea-savvy

Government Aims to Eradicate “Power Imbalance” Within the Logistics Industry

(image: Yonhap)

(image: Yonhap)

SEOUL, Aug. 31 (Korea Bizwire)In order to rid the shipping and logistics industry of power imbalances that result in unfair business practices, a new center where people can call in to report such practices is being proposed by the government.

The government will follow up on the reports through investigations and other measures such as mediation and having the Fair Trade Commission involved.

This is according to a newly proposed bill amendment of an existing law submitted by lawmaker Ahn Ho-young of the Democratic Party, currently awaiting its resolution at the National Assembly.

The new center will accept reports of unfair practice and anti-trust issues that arise in the shipping and distribution sector.

More specifically, individuals will be able to report when companies unjustly slash the price of logistics set by shipping firms or unilaterally change contract terms.

The same applies for practices and contracts between shipping firms and their subcontractors.

In the advent that such unfair practices are reported to the center, the government will dispatch a civil servant to the company in question to confiscate relevant data and to carry out an investigation.

If the accusations are found to have merit, the government will order for a correction to be made at the company.

Power abuses within the industry, usually by large corporations that are in the position to commission various business transactions, are a staple of Koreans business.

An official who works at An’s office at the National Assembly said that it was not easy for the bill to make it to the final round of resolution due to opposition from industry insiders and other stakeholders.

“I hope that the new law can rid the industry of power abuses and provide an opportunity for third-party logistics companies to grow,” said the official.

H. S. Seo (

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>