Fair Trade Commission at the Government Sejong Building in Sejong City. 2023.10.13[Photo=Yoo Dae-gil, dbeorlf123@ajunews.com]
The Fair Trade Commission (FTC) announced on June 18 that it has collaborated with local governments to amend 233 unreasonable ordinances and regulations that restrict competition among businesses or undermine consumer rights. These changes aim to foster a more competitive environment across the country.
Among the amended ordinances, 36 pertained to entry restrictions, 34 involved discrimination against businesses, 3 limited competitive capabilities, and 160 affected consumer rights.
The FTC has relaxed capital requirements for agricultural wholesale market corporations and the number of vehicles required for car rental business registration, considering the needs of businesses. Additionally, some local governments that previously lacked clear principles for selecting contractors for tourism promotion and facility management have been directed to adopt a principle of open competition. The FTC expects these measures to lower barriers and facilitate market entry for new businesses.
Furthermore, certain local ordinances that restricted market participation by specific businesses, such as those requiring souvenir developers to reside in the area, have been revised. The requirement has been removed, allowing for broader participation as long as the souvenirs reflect local identity.
To enhance competitive conditions in the local construction industry, the FTC has also addressed unnecessary excessive competition among local construction and stone companies, which could reduce competition and encourage collusion.
Additionally, the FTC is addressing provisions in local regulations that asymmetrically define usage fees and penalties. When local governments operate facilities for youth, sports, or lifelong education, they will be required to follow the FTC's consumer dispute resolution standards for refunding fees and compensating for penalties if applicants are unable to use the facilities as intended.
The FTC is committed to identifying and improving ordinances 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. In 2024, the FTC worked with local governments to improve 173 ordinances, including 33 entry restrictions, 31 instances of business discrimination, 25 limitations on business activities, and 84 consumer rights restrictions.
Among the amended ordinances, 36 pertained to entry restrictions, 34 involved discrimination against businesses, 3 limited competitive capabilities, and 160 affected consumer rights.
The FTC has relaxed capital requirements for agricultural wholesale market corporations and the number of vehicles required for car rental business registration, considering the needs of businesses. Additionally, some local governments that previously lacked clear principles for selecting contractors for tourism promotion and facility management have been directed to adopt a principle of open competition. The FTC expects these measures to lower barriers and facilitate market entry for new businesses.
Furthermore, certain local ordinances that restricted market participation by specific businesses, such as those requiring souvenir developers to reside in the area, have been revised. The requirement has been removed, allowing for broader participation as long as the souvenirs reflect local identity.
To enhance competitive conditions in the local construction industry, the FTC has also addressed unnecessary excessive competition among local construction and stone companies, which could reduce competition and encourage collusion.
Additionally, the FTC is addressing provisions in local regulations that asymmetrically define usage fees and penalties. When local governments operate facilities for youth, sports, or lifelong education, they will be required to follow the FTC's consumer dispute resolution standards for refunding fees and compensating for penalties if applicants are unable to use the facilities as intended.
The FTC is committed to identifying and improving ordinances 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. In 2024, the FTC worked with local governments to improve 173 ordinances, including 33 entry restrictions, 31 instances of business discrimination, 25 limitations on business activities, and 84 consumer rights restrictions.
* This article has been translated by AI.
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