Seoul City vowed to push for aggressive “economic democratization” as part of efforts to better promote the economic well-being of conglomerates and local small businesses in the city, officials said Thursday.

Seoul Mayor Park Won-soon and 14 organizations, including large companies, small business entrepreneurs and civic groups, pledged to establish an economic environment that promotes fair trade and protects against economic vulnerability. 

Under the pledge, the Seoul Metropolitan Government will arrange for conglomerates to discuss with local small businesses measures that will allow both to thrive alongside one another, before they plan to construct shopping malls or super supermarkets -- SSM, or chain stores operated by large retailers.

Before companies acquire mall construction permit from authorities, the city will assess the mall’s potential impact on neighboring small markets and businesses, and map out possible measures to reduce damage to sales, officials said.

Currently, the potential impact assessment is autonomously conducted by large businesses that push for SSMs or shopping malls. The conglomerates are allowed to submit the assessment document one month before they register for the malls.

“The deadline for the impact assessment does not allow both parties to negotiate fully since it is carried out after the entire construction is completed,” Seoul officials said.

The city is currently conducting a commercial influence assessment of Lotte Shopping Mall in the Digital Media Center district in northwest Seoul before its construction proposal is submitted to the city’s construction committee.

In a bid to curb unfair trade practices between franchise headquarters and chain stores, the city also vowed to introduce a fair trade certificate system later this year.

The franchise companies will be graded in three parts -- fairness, profitability and stability -- to motivate companies to pursue fair trade.

The city also said it would enact an “economic democratization” ordinance in May. The new ordinance will allow the city to form a new team that is officially in charge of handling economic democratization measures. It will also release an “economic democratization index” starting from next year to evaluate the changes in the daily life of citizens.

By Lee Hyun-jeong (rene@heraldcorp.com)