The Fair Trade Commission has decided to extend the implementation period of the’Promotional Event Guideline’ by one year, emphasizing the win-win relationship between the distribution industry and the supply industry./Photo = Provided by the Fair Trade Commission
The Fair Trade Commission has decided to extend the implementation period of the’Promotional Event Guideline’ by one year, emphasizing the win-win relationship between the distribution industry and the supply industry.
On the 2nd, Chairman Sung-wook Cho held the’Distribution-Supply Industry Win-Win Agreement Ceremony’ with representatives of 17 distribution companies and 11 suppliers, including department stores and large marts, and at the KBIZ Hall of the Small and Medium Business Administration in Seoul, and made the announcement.
The promotional event guideline is to exempt small and medium-sized suppliers from the obligation to share 50% of the promotional cost, which is obligatory to large retailers when conducting a promotional event to exhaust inventory.
The government has imposed a 50% share of promotional costs on large-scale distributors to prevent large-scale distributors from passing on the burden of promotional expenses to suppliers.
On the other hand, the large-scale distribution industry decided to implement a win-win plan to support the supplier industry in order to overcome the management crisis caused by the novel coronavirus infection (Corona 19), following last year.
The win-win plan included a intensive support plan for small and medium-sized suppliers. The number of distributors participating in the agreement increased from 13 last year to 17 this year.
Chairman Cho said, “I am grateful for the promise of more distributors participating in this win-win cooperation, lowering sales fees, exemption from minimum guarantee fees, early payment, and support for advertising expenses.”
Reporter Lee Mi-kyung, Hankyung.com [email protected]
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