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SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON THE COLLABORATIVE COOPERATION IN LOGISTICS BUSINESS, THE SUPPORT OF MICRO-ENTERPRISES, AND DISPUTES OVER LOGISTICS

Article 1 (Purpose) The purpose of this Ordinance is to consolidate mutually beneficial cooperation between large distribution enterprises, quasi-superstores, small and medium distribution enterprises, and micro-enterprises; and to facilitate the rational mediation of disputes regarding distribution, so as to promote balanced development of the local distribution industry and to contribute to the invigoration of local economies pursuant to Article 12-2 of the Distribution Industry Development Act and Article 16 of the Enforcement Decree of said Act.
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 2 (Definitions) Terms used in this Ordinance shall be defined as follows: <Amended by Ordinance No. 5058, Dec. 22, 2010; Ordinance No. 5676, Mar. 20, 2014; Ordinance No. 6016, Oct. 8, 2015; Ordinance No. 6073, Jan. 7, 2016>
1. The term "large distribution enterprise" means large superstores defined in attached Table 1 of the Distribution Industry Development Act;
2. The term "small and medium distribution enterprise" means the enterprises engaged in the distribution industry under subparagraph 1 of Article 2 of the Distribution Industry Development Act (hereinafter referred to as the "Act") among the small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises;
3. The term "micro-enterprise" means a person defined as a micro-enterprise under subparagraph 2 of Article 2 of the Act on Special Measures for Development of Small and Micro-Enterprises, among those engaged in the distribution industry;
4. The term "win-win cooperation" means a project or activity performed jointly by large distribution enterprises and semi-large stores under subparagraph 5 (hereinafter collectively referred to as "large distribution enterprises") with small and medium distribution enterprises and micro-enterprises, in order to enhance mutual benefits in human resources, financing, purchasing, marketing, advertisement, etc.;
5. The term "semi-large store" means a store defined under subparagraph 4 of Article 2 of the Act;
6. The term "local commercial area" means a conventional distribution area formed by merchants in Seoul for purchasing, sales, exchange, services, etc.

Article 3 (Mayor’s Responsibility) The Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") shall formulate and implement measures necessary to help large distribution enterprises, small and medium distribution enterprises, and micro-enterprises within Seoul build relationships based on for win-win cooperation.
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 4 (Establishment and Implementation of Plan for Win-win Cooperation) (1) The Mayor shall formulate and implement a plan for win-win cooperation in the distribution industry in the Seoul Metropolitan Government in order to promote win-win cooperation between large distribution enterprises, small and medium distribution enterprises, and micro-enterprises.
(2) Each plan for win-win cooperation shall include the following matters:
1. Basic direction-setting and strategies for policies on win-win cooperation;
2. Matters regarding the protection and support of small and medium distribution enterprises and micro-enterprises;
3. Matters regarding the implementation and support of win-win cooperation projects;
4. Matters regarding the survey of the status and analysis of the local distribution industry;
5. Matters regarding the search and fostering of exemplary enterprises in win-win cooperation;
6. Matters regarding the contribution and cooperation of large distribution enterprises to local communities;
7. Matters regarding the result of implementation and performance evaluation of the previous year's plan for win-win cooperation;
8. Other matters necessary for the promotion of win-win cooperation.
(3) Where the Mayor has established the win-win cooperation plan, he/she shall immediately report it to the standing committee under the control of Seoul Metropolitan Council (hereinafter referred to as the "Seoul Council"). <Amended by Ordinance No. 6073, Jan. 7, 2016>
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 5 (Contribution and Cooperation of Large Distribution Enterprises to Local Communities, etc.) (1) The Mayor may recommend or request the operator of a large distribution enterprise to take the initiative or cooperate in the following matters for balanced development in distribution business in an area and the fostering of local economies: <Amended by Ordinance No. 6073, Jan. 7, 2016>
1. Matters regarding the promotion of employment of local residents;
2. Matters regarding the prospective location and the opening time and scale of a store of the business entity with its principal place of business in the area;
3. Matters regarding the participation of local enterprises in bidding for services or construction works;
4. Matters regarding increasing the supply of products manufactured by local enterprises;
5. Matters regarding the contribution to local communities through programs for public interest;
6. Matters on which the committee adopts a resolution;
7. Matters regarding fund raising for balanced development of the local distribution industry;
8. Matters regarding converting quasi-superstores into local corporations;
9. Other matters regarding the win-win cooperation with small and medium distribution enterprises and micro-enterprises.
(2) The Mayor may execute an agreement on mutual cooperation with large distribution enterprises in order to promote win-win cooperation.
(3) The Mayor may select and publicize large distribution enterprises which contribute to the win-win cooperation and balanced development of the local distribution industry as enterprises exemplary of win-win cooperation.
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 6 (Seoul Metropolitan Distribution Dispute Mediation Committee) (1) The Mayor shall establish the Seoul Metropolitan Distribution Dispute Mediation Committee (hereinafter referred to as the "Committee ") to mediate the following disputes referred to in Article 36 (1) of the Act: <Amended by Ordinance No. 6073, Jan. 7, 2016>
1. Disputes regarding business activities between registered superstores, etc., and wholesalers and retailers. Provided, That matters governed by the Monopoly Regulation and Fair Trade Act shall be excluded;
2. Matters regarding business activities between registered superstores, etc., and small and medium manufacturers. Provided, That matters governed by the Monopoly Regulation and Fair Trade Act shall be excluded;
3. Disputes regarding habitats between registered superstores, etc., and residents adjacent thereto.
(2) Deleted. <by Ordinance No. 6073, Jan. 7, 2016>
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 6-2 (Mediation of Disputes) (1) Any person dissatisfied with a draft mediation agreement of the Committee of an autonomous Gu pursuant to Article 37 (3) of the Act, may file an application to mediate the case with the Committee within 15 days after receipt of the draft mediation.
(2) Upon receipt of an application for mediation under paragraph (1), the Committee shall notify the contents thereof to the Committee of the relevant autonomous Gu and the relevant parties excluding the applicant.
(3) The Committee may request the Committee of the relevant autonomous Gu to submit documents on mediation and examination. In such cases, the Committee of the relevant autonomous Gu shall comply therewith except in extenuating circumstances.
(4) The Committee shall examine the case and prepare a draft mediation agreement within 30 days after receipt of an application for mediation: Provided, That in extenuating circumstances, the Committee may resolve to extend the period.
[This Article Newly Inserted by Ordinance No. 6073, Jan. 7, 2016]

Article 7 (Composition of Committee) (1) The Committee shall be comprised of at least 11 members, including one chairperson and one vice chairperson and have a balanced gender ratio.
(2) The Committee chairperson and the vice chairperson shall be elected by and from among Committee members, and the members shall be the following persons:
1. Any of the following persons commissioned by the Mayor;
a. Judges, public prosecutors, or qualified attorneys-at-law;
b. Representatives from the Chamber of Commerce and Industry in the Seoul Metropolitan Government;
c. Representatives from consumer organizations;
d. Persons with abundant knowledge and experience in the distribution industry;
e. Consumer residents of the relevant local government;
2. Public officials in charge of affairs related to retail and wholesale industries in the Seoul Metropolitan Government;
(3) The term of office of each council member who is not a public official shall be two years: Provided, That the term of office for each council member commissioned to fill a vacancy shall be the remaining term of office for his/her predecessor.
(4) The chairperson shall represent the Committee and have overall control over administrative affairs of the Committee: Provided, That the vice chairperson shall act on behalf of the chairperson, if the chairperson is unable to perform any of his/her duties in extenuating circumstances.
(5) The Committee shall have one senior secretary and one secretary to perform administrative work of the Committee, and the Officer or Director of the Division responsible for distribution business shall serve as the senior secretary, while the Grade-V officer in charge shall serve as the secretary.
[This Article Newly Inserted by Ordinance No. 6073, Jan. 7, 2016]

Article 8 (Operation of Committee) (1) The chairperson shall convene and preside over Committee meetings. <Amended by Ordinance No. 6073, Jan. 7, 2016>
(2) When the chairperson intends to convene a meeting of the Committee, he/she shall notify each Committee member of the date, time, and place for meeting and items on the agenda by not later than seven days before opening the meeting: Provided, That the foregoing shall not apply in exception circumstances that requires an urgent action. <Amended by Ordinance No. 5058, Dec. 22, 2010; Ordinance No. 5279, Mar. 15, 2012; Ordinance No. 6073, Jan. 7, 2016>
(3) A meeting of the Committee shall be duly formed with the attendance of the majority of incumbent Committee members, and a resolution shall be adopted by the affirmative voting of the majority of members present at the meeting. <Amended by Ordinance No. 5058, Dec. 22, 2010; Ordinance No. 6073, Jan. 7, 2016>
(4) The Committee shall prepare and maintain meeting minutes stating the following details: <Amended by Ordinance No. 6073, Jan. 7, 2016>
1. The date, time, and place of meeting;
2. Members present at the meeting;
3. Agenda for mediation and details of mediation and decision;
4. Other matters the chairperson deems necessary;
5. The signature and seal affixed by the chairperson confirming the details.
(5) Committee members who attend a meeting may be provided allowances and reimbursed for travel expenses pursuant to Seoul Metropolitan Government Ordinance on the Payment of Committee Allowances and Travel Expenses, within the budget. <Amended by Ordinance No. 5279, Mar. 15, 2012; Ordinance No. 6073, Jan. 7, 2016>
(6) Except as otherwise expressly provided for in this Ordinance, Seoul Metropolitan Government Ordinance on Establishment and Operation of Committee shall be applied mutatis mutantis to matters on the operation of the Committee determined by the chairperson, after prior resolution by the Council. <Amended by Ordinance No. 5279, Mar. 15, 2012; Ordinance No. 6073, Jan. 7, 2016>

Article 8-2 (Exclusion, Challenge and Evasion of Members) (1) Where any member of the Committee (hereafter referred to as "member" in this Article and Article 5) falls under any of the following subparagraphs, he/she shall be excluded from deliberating on and mediating any case on which the relevant request for dispute mediation (hereafter referred to as the "case") is filed:
1. Where a Committee member, or his/her current or former spouse, becomes a party to the relevant case or is holding any interest or duty jointly with the party to such case;
2. Where a Committee member is or was a relative of a party to the relevant case;
3. Where a Committee member works for a superstore, etc., wholesaler or retailer, small and medium manufacturer, or any other company related to the case;
4. Where a Committee member has testified or appraised in connection with the relevant case; or participates or has participated in the relevant dispute as an agent of any party;
5. Where a Committee member is a party directly interested in the relevant case.
(2) If any circumstances indicate that it would be difficult to expect the impartial deliberation and resolution of any member, a party to the relevant case may file a request for the challenge to him/her with the Committee, and the Committee shall determine such request by resolution.
(3) If a member falls under paragraph (1) or (2), he/she shall evade the deliberation and resolution on the relevant case.
[This Article Newly Inserted by Ordinance No. 6073, Jan. 7, 2016]

Article 8-3 (Removal or Dismissal of Members) Where a member falls under any of the following cases, the Mayor may remove or dismiss such member from office:
1. Where a member expressed intent not to continue his/her duties as a member;
2. Where it impracticable for a member to perform his/her duties due to a disease requiring long-term treatment or an overseas trip of not less than six months;
3. Where a member has divulged any confidential information he/she learned in the course of performing his/her duties or misappropriated it;
4. Where a member commits any misdeed in connection with his/her duties or any misdeed deemed disqualifying him/her as a Committee member;
5. A member sentenced to imprisonment without labor or heavier punishment in whose case three years have not passed since such punishment was completely executed or the non-execution of the punishment was decided; or in whose case two years have not elapsed since the suspension of execution was complete, or a member under suspended sentence of imprisonment without labor or heavier punishment;
6. Where a member fails to refrain himself/herself despite falling under a case set forth in Article 8-2 (3);
7. Where a member is deemed disqualified due to neglecting duties, losing dignity, or other ground.
[This Article Newly Inserted by Ordinance No. 6073, Jan. 7, 2016]

Article 9 (Support for Promotion of Win-Win Cooperation) The Mayor may provide administrative and financial support necessary for promoting win-win cooperation within the budget, if he/she finds that such support is necessary to promote win-win cooperation. <Amended by Ordinance No. 6073, Jan. 7, 2016>

Article 10 (Survey of Impacts on Commercial Area) (1) The Mayor may survey the impact on the local commercial area, of a large distribution enterprise opening a branch , if needed for establishing the win-win cooperation plan. <Amended by Ordinance No. 6073, Jan. 7, 2016>
(2) The Mayor may conduct fact-finding surveys and analysis to publish the optimum ratio and the total number of large distribution enterprises by area.
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 11 (Adjustment of Area for Branch Opening) If deeming that small and medium distribution enterprises, and micro-enterprises suffers or is likely to suffer severe losses due to opening a large distribution enterprise, the Mayor may advise a large distribution enterprise operator to adjust the area for and timing of branch opening and the size of such branch.
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 12 (Restrictions on Business Hours, etc.) (1) The Mayor may advise the heads of Gus to ensure uniformity around the Seoul Metropolitan Government in issuing the following orders pursuant to Article 12-2 of the Distribution Industry Development Act:
1. Restriction on business hours from 12:00 AM to 10 AM;
2. Two days of compulsory closure per month. In such cases, the head of a Gu shall designate any holiday as a date for compulsory closedown, but he/she may designate a day other than a holiday as a date for compulsory closedown after reaching an agreement with interested parties.
(2) If deeming that small and medium distribution enterprises, and micro-enterprises suffers or is likely to suffer severe losses on certain products due to business activities of their neighboring large distribution enterprises, etc., the Mayor may advise the operators of such large distribution enterprises, etc., to wholly or partially limit the trade of the relevant products.
[This Article Wholly Amended by Ordinance No. 5279, Mar. 15, 2012]

Article 13 (Duty of Confidentiality) No member of the Committee nor any person involved in an impact survey on a commercial area, shall disclose any trade secret of any distribution enterprise, he/she becomes aware of in the course of performing his/her duties. <Amended by Ordinance No. 6073, Jan. 7, 2016>

Article 14 (Enforcement Rule) Matters necessary for the enforcement of this Ordinance shall be prescribed by rule. <Amended by Ordinance No. 6073, Jan. 7, 2016>
[This Article Newly Inserted by Ordinance No. 5058, Dec. 22, 2010]