Fpr ashipper a freight forwarder performs all the services such as arranging for picking-up, consolidating, warehousing, loading, carrying, insuring and delivering the cargo. In theory a freight forwarder may be a mere conventional forwarding agcnt or achicvc the legal status as a carricr. It should be dctcrmincd on a case by case basis by interpreting the intent of parties. In dong so due consideration is to be given to totality of relevant circumstances of the case. In practice the freight forwarder mostly assumes the legal status as a carrier. Reflccting this reality the Goods Distribution Promotion Act stipulates a comprechensive status of a frcight forwarder beyond the conventional status of a forwarding agent under the Korean Commercial Code. The Act requires a freight forwarder to establish and maintain evidence of financial responsibility as aprccondition for engaging in his business. This financial responsibility requirement is intended to ensure the minimum financial capability of a freight forwarder for the administrative purpose of maintaining the financial reliability of the freight forwarder. The financial responsibility requirement should not be a legal requirement for a freight forwarder to achievc the legal status as a carrier. However, if a freight forwarder satisfies the financial responsibility requirement, it will be considcred as an csscntial one of all relevant circumstances in detcrmining whether the freight forwarder achieves the legal status as a carricr in the case. Corresponding to the business reality of a freight forwarder and the provisions of the Act reflecting it, it is time for the Korean Commercial Code to incorporatc provisions in this respcet. This combined policy format of the Act on the one hand and the Korean Commercial Code on the other could creatc syncrgetic effects. Financial responsibility requirement selectively forces out financially unsound freight forwarders and plays a crucial rolc in restructuring their industry. Also it will result in astabilized legal relationship between partics.