The ruling Saenuri Party will seek to rewrite the nation’s fair trade law to prevent large companies from bullying their suppliers and distributors as part of efforts to level the playing field for all businesses, a lawmaker said Tuesday.

Under the envisioned revision bill to the Fair Trade Act, companies that engage in unfair business practices will have to pay punitive damages to the victims, Rep. Rhee Chong-hoon of the ruling party said.

Meant to punish the offending party for its reckless or unconscionable actions or conduct, punitive damages are considerably or greatly higher than the measurable value of the injury.

The bill will also include measures allowing victims to file class action suits against the companies and appeal decisions by the country’s anti-trust regulator, among others.

The ruling party’s move comes days after millions of independent store owners vowed to boycott one of the country’s largest dairy producers in protest of its high-handed attitude toward distributors.

The protest began after a phone conversation between a sales representative of the company Namyang Dairy and a distributor emerged on the video sharing Web site YouTube earlier this month.

In the recording, the salesman is heard threatening and cursing at the store owner when he refuses to accept more products than he can sell.

The Namyang incident revealed that unfair business practices often include forcing products on distributors, demanding bribes, and distributing products nearing their expiry dates, the lawmaker said.

Namyang has apologized for the incident and promised to overhaul its staff training system.

Large companies in South Korea have been under fire for domineering over their smaller suppliers and distributors, prompting the new government to map out measures to root out unfair business practices. (Yonhap News)