Small businesses, which have traditionally been in a subordinate position in transactions with large corporations, are pushing for the introduction of 'consultation request rights' through cooperatives. The Ministry of Small and Medium Enterprises and Startups (SME Ministry) is collaborating with the Fair Trade Commission to propose an exception to collusion regulations under the Fair Trade Act, a move that has been welcomed by small business cooperatives on the ground.
According to government and small business sources on July 21, the SME Ministry reported the 'Consultation Request Rights for Small and Medium Enterprises Cooperatives' at a Cabinet meeting on July 14 and has begun efforts to improve the system. The core of the proposal is to allow cooperatives, rather than individual small businesses, to request changes in pricing or delivery conditions from large corporations and other trading partners. This issue is expected to be a major topic in the upcoming SME Ministry report next month.
The key aspect is the 'exclusion of collusion under the Fair Trade Act.' Under current law, businesses that come together to negotiate prices or trading conditions can be penalized for unfair joint actions (collusion). In response, the SME Ministry has formed a 'Task Force for System Improvement' with the Fair Trade Commission to agree that legitimate negotiations and adjustments through cooperatives will be excluded from collusion regulations. Large corporations that receive consultation requests will be obligated to respond, and if they refuse, small businesses can apply for mediation through the SME Ministry.
This initiative has gained momentum since the President's directive during a work report last December, recognizing that individual businesses cannot effectively counter demands for price cuts or unfair trading practices from large corporations.
An official from the SME Ministry stated, "Legislation related to consultation request rights has been proposed by lawmakers Oh Se-hee and Kim Won-yi of the Democratic Party, and we are currently working on amending the Small and Medium Enterprises Cooperatives Act based on these proposals."
Cooperatives have expressed optimism, noting that Prime Minister Han Seung-sook, who has a strong understanding of the private sector and a commitment to fostering a culture of mutual growth, is leading the effort to resolve inter-departmental challenges, which they believe will lead to tangible legislative outcomes.
Shin Bong-ho, executive director of the Korea Corrugated Packaging Industry Cooperative, remarked, "This system is essential for small businesses to voice their concerns against large corporations. Prime Minister Han, who has served as the Minister of Small and Medium Enterprises, understands the need for coexistence between large and small businesses, so we expect the Cabinet's decision to proceed smoothly."
Earlier, the Korea Federation of Small and Medium Enterprises held the 'First Cooperative Activation Committee of 2026' on July 10, discussing the progress of the consultation request rights initiative and reinforcing efforts for legal amendments.
Seo Jae-yoon, head of the Cooperative Division at the Korea Federation of Small and Medium Enterprises, stated, "The SME Ministry and the Fair Trade Commission have been continuously working on practical drafts since last year, and the Federation has also been indirectly expressing its opinions. Given the strong push for this previously passive issue, we hope to see it finalized within this year."
* This article has been translated by AI.
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