Seoul Targets Non-Compliant Consumer Co-ops for Data, Liquidation Compliance

The Seoul Metropolitan Government has issued a public notice targeting consumer cooperatives suspected of engaging in illegal activities. The notice, identified as No. 2026-1091, requests these organizations to submit relevant materials to verify alleged wrongdoings and to fulfill their legal obligations regarding dissolution registration and liquidation.

Consumer cooperatives, known in Korea as sobi-ja saenghwal hyeopdong johap, are organizations formed by consumers to mutually meet their economic and social needs, often providing goods or services at favorable conditions. These entities operate under specific regulations, primarily the Consumer Livelihood Cooperatives Act, which ensures their transparent operation and protects member interests. The city’s action underscores its commitment to upholding these regulations and safeguarding consumers from illicit practices.

Specifically, the notice calls upon cooperatives linked to illegal acts to take two primary steps. First, they are required to submit all necessary documentation that can confirm or clarify the factual relations of their alleged illegal activities. Second, these cooperatives are reminded of their legal duty to proceed with dissolution registration and subsequent liquidation, if deemed necessary due to their non-compliance or illegal operations. Dissolution registration formally terminates the cooperative’s legal existence, followed by liquidation, which involves settling assets and liabilities.

This “service by public notice” (공시송달) is a legal procedure employed when direct notification to the parties concerned is challenging or impossible. While this public announcement does not contain specific deadlines or detailed application instructions, it serves as a formal legal step by the Seoul Metropolitan Government to ensure compliance. Affected consumer cooperatives or those requiring clarification are strongly advised to consult the relevant city authorities or legal counsel to understand their specific obligations and the necessary procedures.

The Seoul Metropolitan Government reiterates its dedication to maintaining a fair and transparent market environment and protecting its citizens from economic harm caused by non-compliant or fraudulent organizations. This measure is part of ongoing efforts to ensure all entities operating within the city adhere strictly to national laws and regulations.

Source: 서울특별시 — Original Notice (Korean)