( July 28, 2026, 03:15 GMT | Official Statement) -- MLex Summary: South Korea’s cabinet has approved revisions to the enforcement decree of the Fair Transactions in Franchise Business Act to expand the information included in franchisors’ disclosure documents, tighten registration procedures and strengthen penalties for repeat violations. The Korea Fair Trade Commission said Tuesday the revised disclosures will cover private-equity ownership, franchise long-term survival prospects, foreign expansion, payment costs and average early-termination penalties, while outlet numbers must be updated quarterly and presented in a new summary for prospective franchisees. Franchisors seeking initial registration must also prove they have operated at least one directly managed outlet for at least one year, while electronic notices and voluntary registration-cancellation procedures will be formalized. Most disclosure-related changes will take effect on Jan. 1, 2028, with unrelated provisions taking effect after promulgation on Aug. 4, 2026.Statement is attached (in Korean). ...
Prepare for tomorrow’s regulatory change, today
MLex identifies risk to business wherever it emerges, with specialist reporters across the globe providing exclusive news and deep-dive analysis on the proposals, probes, enforcement actions and rulings that matter to your organization and clients, now and in the longer term.
Know what others in the room don’t, with features including:
- Daily newsletters for Antitrust, M&A, Trade, Data Privacy & Security, Technology, AI and more
- Custom alerts on specific filters including geographies, industries, topics and companies to suit your practice needs
- Predictive analysis from expert journalists across North America, the UK and Europe, Latin America and Asia-Pacific
- Curated case files bringing together news, analysis and source documents in a single timeline
Experience MLex today with a 14-day free trial.