Fair Trade Commission at the Government Sejong Building in Sejong City. 2023.10.13[Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]
Local ordinances that require developers and producers of regional tourism souvenirs to reside in the area will be abolished. Additionally, the capital requirements for agricultural wholesale market corporations criticized for excessively limiting competition are expected to be reduced.
The Fair Trade Commission announced on June 18 that it has collaborated with local governments to improve 233 unreasonable ordinances and regulations nationwide that restrict competition among businesses or undermine consumer rights.
Among the revised ordinances, 36 were related to entry restrictions, 34 to discrimination against businesses, 3 to limitations on competitive capabilities, and 160 to consumer rights violations.
The commission has relaxed the capital requirements for agricultural wholesale market corporations and the number of vehicles required for car rental business registration, considering the needs of businesses. In some local governments where the principles for selecting contractors for private consignment of tourism promotion and facility management were unclear, the commission has mandated the specification of open competition principles. These measures are expected to lower barriers and facilitate market entry for new businesses.
Furthermore, certain ordinances that limited market participation by specific businesses, thereby reducing competition in local markets, included provisions regarding the recognition of tourism souvenirs. Some local regulations stipulated that souvenirs must be developed or produced by residents of the area, which has now been amended to only require that they reflect local identity.
To eliminate limitations on competitive capabilities, improvements have also been made to the competitive conditions in the local construction industry. Some local governments had regulations that discouraged unnecessary excessive competition among local construction or stone companies. The commission explained that such regulations could reduce competition among businesses and encourage collusion.
Provisions in local regulations that asymmetrically defined usage fees and penalties were also scrutinized. When local governments operate facilities for youth, sports, or lifelong education, they will be required to follow the commission's 'Consumer Dispute Resolution Standards' for refunding usage fees and compensating for penalties when applicants cannot use the facilities normally or do not use them at all.
The Fair Trade Commission is committed to identifying and improving ordinances and regulations that restrict competition and undermine consumer rights each year. It is also encouraging voluntary participation from local governments in conjunction with the Ministry of the Interior and Safety's joint evaluations of local governments. In 2024, the commission improved 173 ordinances in collaboration with local governments, including 33 related to entry restrictions, 31 to business discrimination, 25 to business activity limitations, and 84 to consumer rights restrictions.
The Fair Trade Commission announced on June 18 that it has collaborated with local governments to improve 233 unreasonable ordinances and regulations nationwide that restrict competition among businesses or undermine consumer rights.
Among the revised ordinances, 36 were related to entry restrictions, 34 to discrimination against businesses, 3 to limitations on competitive capabilities, and 160 to consumer rights violations.
The commission has relaxed the capital requirements for agricultural wholesale market corporations and the number of vehicles required for car rental business registration, considering the needs of businesses. In some local governments where the principles for selecting contractors for private consignment of tourism promotion and facility management were unclear, the commission has mandated the specification of open competition principles. These measures are expected to lower barriers and facilitate market entry for new businesses.
Furthermore, certain ordinances that limited market participation by specific businesses, thereby reducing competition in local markets, included provisions regarding the recognition of tourism souvenirs. Some local regulations stipulated that souvenirs must be developed or produced by residents of the area, which has now been amended to only require that they reflect local identity.
To eliminate limitations on competitive capabilities, improvements have also been made to the competitive conditions in the local construction industry. Some local governments had regulations that discouraged unnecessary excessive competition among local construction or stone companies. The commission explained that such regulations could reduce competition among businesses and encourage collusion.
Provisions in local regulations that asymmetrically defined usage fees and penalties were also scrutinized. When local governments operate facilities for youth, sports, or lifelong education, they will be required to follow the commission's 'Consumer Dispute Resolution Standards' for refunding usage fees and compensating for penalties when applicants cannot use the facilities normally or do not use them at all.
The Fair Trade Commission is committed to identifying and improving ordinances and regulations that restrict competition and undermine consumer rights each year. It is also encouraging voluntary participation from local governments in conjunction with the Ministry of the Interior and Safety's joint evaluations of local governments. In 2024, the commission improved 173 ordinances in collaboration with local governments, including 33 related to entry restrictions, 31 to business discrimination, 25 to business activity limitations, and 84 to consumer rights restrictions.
* This article has been translated by AI.
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