2003-2004 Franchise Law Review & Forecast

Korea's first franchise law, the Fair Franchise Transactions Act (the "FFTA") was adopted May 2002, effective Nov. 2002. Its Presidential Enforcement Decree - setting forth detailed information to be provided in the franchise information disclosure statement and a description of concrete types of unfair transactions broadly prohibited under FFTA - was promulgated Nov. 2002 (last amended June 2003). In the Korean system, Enforcement Decrees provide detailed instructions for statutory compliance; therefore, it is to be expected that 2004's changes to applicable law will be found in future amendments to the Enforcement Decree.