Distributors' responses to ”improving trade practices” fall to lowest level in seven years, with rates of experiencing unfair practices also rising (Korea)

The percentage of suppliers responding to a question about the status of improvements in trade practices among large Korean distributors hit the lowest in seven years.
This was revealed by the results of the "Survey on Trade Practices." The survey included large marts, corporate supermarkets (SSMs), convenience stores, department stores, duty-free shops, and TV shops.
We have selected 42 major large-scale distribution brands in nine business formats, including online shopping malls, outlet malls, T-commerce, and specialty stores, and are conducting business with these companies.
The survey was conducted online and offline among 7,600 suppliers. As a result, 85.5% of suppliers responded that their trading practices had improved, down from 90.7% last year.
This is a 5.2 percentage point decrease from the previous year, which is the lowest level in seven years since 2017, when it was 84.1%. By business type, convenience stores had the highest improvement response rate at 93.6%, followed by large
This was followed by Tokyo/SSM (91.0%) and T-commerce (91.0%). Meanwhile, online shopping malls recorded the lowest level at 69.3%, a drop of 11.
This was a 3 percentage point decrease. In addition, the rate of experiencing unfair conduct increased from last year for the majority of conduct types. The percentage of those who experienced late payment for special purchases was 10.4% for special purchases (
The number of people who bought products at a discount increased from 3.7% to 8.3% and direct purchases increased from 0.8% to 6.3%. The number of people who bought products at a discount increased from 2.7% to 5.2%, and the number of people who bought products at a discount increased from 3.4% to 7.6%.
The highest rate of unfair practices was in online shopping malls, with 10 cases out of 12 total types of practices. The rate of use of standard contracts in the distribution trading sector was 97.4%,
This was a slight decrease from last year's 98.4%. The highest rate of standard contract use was for TV shopping (99.5%), while outlet and mall complexes (96.2%) had a relatively low rate.
Based on the results of this investigation, the committee plans to focus its policy capabilities on improving trade practices in areas where unfair practices are common.
The committee plans to strengthen monitoring of major violations occurring at convenience stores and to seek ways to improve the system.
"We also plan to push for legal reform to make this an item eligible for punitive damages."