Business coordination policy of the Korean government aims at protecting small-medium businesses where large enterprises’ entrance results in a decrease in the demand for goods and services supplied by a large number of small-medium enterprises of the relevant type of business and thereby adversely affects, or is likely to affect, the managerial stability and survival of small-medium enterprises. Facing the rapid growth SSM’s(Super Supermarkets) and the recent expansion of SSM franchises(e.g., E-mart’s No Brand), some small-medium enterprises(SME’s) strongly argue that the government should put SSM franchises under the business coordination policy in favor of SME’s. This study, with a thorough review of relevant laws, such as he Collaboration Law(Act on the Promotion of Collaborative Cooperation Between Large Enterprises and Small-Medium Enterprises) and the Franchise Law(Fair Transactions in Franchise Business Act), and the competitive structure and the practices in the Korean supermarket industry, identified the key issues surrounding the enforcement of the business coordination policy to franchise businesses. This study concludes that the current articles in the law and the ordinance are not applicable to SSM franchises. But, considering the purpose of legislation of the Collaboration Law, this study suggests several directions for revising the current business coordination policy.