Supply price adjustment rights, sales policy options in operation; Fair Trade Commission to continue institutional support including standard contract revisions

Korea Fair Trade Commission Chairman Ju Byung-ki said Monday the agency will pursue the introduction of collective bargaining rights under the Dealership Act and establish contract termination procedures to close the bargaining power gap between suppliers and dealers, allowing fair trading terms to take hold.

Ju made the remarks during a visit to the Pyeongtaek factory of Maeil Dairies, a top-rated company in the dealership sector's fair trade cooperation program, where he reviewed cooperative practices between the company's headquarters and its dealers.

Korea Fair Trade Commission Chairman Ju Byung-ki visits the Pyeongtaek factory of Maeil Dairies on Monday to review cooperative practices between the company and its dealers. [Korea Fair Trade Commission]
Korea Fair Trade Commission Chairman Ju Byung-ki visits the Pyeongtaek factory of Maeil Dairies on Monday to review cooperative practices between the company and its dealers. [Korea Fair Trade Commission]

The visit came after Maeil Dairies received the top rating in the Fair Trade Commission's dealership sector fair trade cooperation assessment for five consecutive years, from 2021 through 2025.

"Dealers serve as the practical retail network connecting consumers and manufacturers, and building a culture in which headquarters and dealers grow together is of paramount importance," Ju said. "Small and mid-sized merchants and self-employed business owners, including dealers, form a vital pillar of the national economy, and the circulation of household income through this sector is a core requirement for fair income distribution and the sustained growth of our economy."

Maeil Dairies presented its cooperative practices at the event, including the full adoption of a standard dealership contract that explicitly grants dealers the right to request supply price adjustments and allows dealers to decide independently whether to participate in promotional campaigns.

The company also said it has created an environment in which dealers can conduct business on more equal footing by guaranteeing long-term contracts and establishing transparent contract termination procedures. Additional cooperative measures highlighted included the operation of a mutual-growth fund, supply price discounts during promotional events, and support for dealers' retail outlet entry costs.

Dealers who attended the meeting shared their experiences of cooperation through Maeil Dairies' sales support policies and employee welfare programs.

"Mutual growth carries even greater significance in that it is a process through which headquarters and dealers build competitiveness together," Ju said. "The Fair Trade Commission will continue its institutional support to further improve the dealership trading environment."

The Fair Trade Commission plans to operate the dealership sector fair trade cooperation system more substantively while revising and introducing standard dealership contracts that reflect on-the-ground needs, in order to promote a culture of voluntary cooperation between suppliers and dealers.


y2k@heraldcorp.com