Korea wants more competition in fuel retail business

South Korea’s Ministry of Knowledge Economy said that it is reviewing the current regulations on petroleum fuel businesses, with a view to limiting the business registration rights of provincial governments. In an attempt to boost competition, the government allowed big retailers such as E-Mart, Lotte Mart and Nonghyup, to operate gasoline retail outlets starting last year. The government wants to boost that number to 20 this year. Registration for conglomerate-run gasoline sites are currently the domain of local authorities. Even though the current law guarantees that anyone who secures a site of a certain size can open a gas station, many provincial governments are bending the law to cater to existing gas pump owners who are being threatened by increased competition by maintaining entry barriers, according to the ministry. (October 4, 2009)