Pounding the pavement

Kim Sang-jo, chairman of the Fair Trade Commission, standing on far right, talks to franchisees at a franchise trade fair in Seoul on Friday.

Kim said franchising companies should share the burden of a minimum wage increase with their franchising partners, adding that the government is working on a set of additional measures to help businesses adjust to a higher minimum wage that went into effect at the start of the year.

On Jan. 1, the minimum wage rose by 16 percent to 7,530 won ($6.90), the biggest jump in nearly two decades.

Kim also stressed the Fair Trade Commission would ensure that franchisees can report any abusive corporate practices to his agency and ban franchising companies from taking any retaliatory steps, including termination of existing deals.

The Fair Trade Commission has been pressuring franchising companies to release information about the margins on key goods that franchisees need to buy for their operations.

[YONHAP]