Purpose - This study aims to investigate the current state of distribution terminology usage by retailers and consumers nationwide, and to suggest a practical improvement plan for its standardization. The Korean distribution industry is closely related to consumers' daily lives. However, in reality, there exists a gap among producers, distributors, and consumers in terms of the definition, understanding, and perception of the terminology. Therefore, standardizing this terminology is essential for more smooth communication. This paper suggests the necessity of committing overall research and survey activities to the actual conditions of using Korean distribution terminology by organizations and their respective management situations, and further, the necessity of probing the problem and its measures in line with the objective and mission of the "Fundamental Law of the Korean Language." Research design, data, and methodology - This study's scope is limited to wholesale and retail including some information systems. First, the study covers most written material including lexicons and glossary of distribution terminology, university textbooks and teaching material for national certificate of qualification, and related laws and ordinances. Second, the survey covers retailers' management situations by store format. The retailers used as the sample for the survey include department stores, discount stores, SSM, and convenience stores. Altogether, 20 specialists were interviewed in their respective sectors or retail formats. Finally, the project team surveyed a sample of 1,300 consumers nationwide on 50 distribution terms mainly used by consumers, including those about awareness, understanding, usage, and attitude. Results - In total, 1,249 terms are drawn through literature research including distribution terminology used in the related literature, glossary and lexicons, distribution terminology in textbooks, and legal terminology. A classified table comprises four large categories including general distribution, distribution marketing, distribution information, and merchandise. The results of the three-step research including literature survey, field survey of retailers, and consumer survey were advised to be screened by academia (retail associations, faculty etc.), retailers (major retail management by store format), retail specialists and consultants, consumers, and Korean linguists. In total, 1,300 questionnaires for 50 terms of the distribution terminology closely associated with consumers were distributed to subjects nationwide. Conclusions - The desired and expected results from this study are summarized from three perspectives as follows: First, from retailers' perspective, a new concept, or coinage of new terms of the distribution industry stems from advanced countries such as America and Europe. However, the original meaning and definition are diluted and distorted with changes in the language users' situations and context. This study provides basic guidelines for standardization of distribution terms used among various retail formats in most daily life situations that consumers encounter. Second, from the nation's perspective, this study suggests optimal choices of distribution terminology in the context of laws and ordinances regarding concerned Ministries. Last, from the consumers' perspective, this paper enables consumers to understand and use distribution terms properly in their daily life.