Mar 10 • 08:11 UTC 🇰🇷 Korea Hankyoreh (KR)

The Federation of Consumer Cooperatives Calls for Change of Supervisory Ministry from the Fair Trade Commission to the Ministry of SMEs and Startups

The Federation of Consumer Cooperatives in South Korea is campaigning to change the main supervising body from the Fair Trade Commission to the Ministry of SMEs and Startups.

Five major consumer cooperative unions in South Korea are advocating for a change in their supervising government body from the Fair Trade Commission (FTC) to the Ministry of SMEs and Startups. This campaign includes an online protest involving over 100 union chairpersons, as well as a signature drive targeting 1,000 members, which will be submitted to key parliamentary offices. The current oversight by the FTC has been in place since 2007, stemming from a change based on the nomenclature of consumer cooperatives, which the unions argue prioritizes consumer protection over support for cooperative development.

The criticism aimed at the FTC highlights a fundamental mismatch between its market regulation focus and the developmental needs of cooperatives. The unions assert that the FTC's structural emphasis on competition policy fails to address the challenges faced in fostering cooperative growth. In contrast, they believe the Ministry of SMEs and Startups could better facilitate initiatives that support cooperatives in navigating economic difficulties—many are currently facing declining sales and increasing deficits due to demographic changes and ongoing economic struggles.

Recent political developments show that bipartisan support for amending the relevant law to transition the supervisory responsibility to the Ministry of SMEs and Startups exists, with proposals already made by various lawmakers. However, progress has been stalled in the National Assembly. The consumer cooperative sector is rapidly pressing for legislative action, fueled by both economic urgency and the hope that the change could lead to better financial and operational support, allowing cooperatives to flourish despite external pressures.

📡 Similar Coverage