Korea Startup Forum "Deep Regret Over Fair Trade Commission's Judgment Ignoring the Dynamism of the Digital Economy"

"Serious Negative Impact on Future Innovative Growth and the Future of Domestic Startups"

[Asia Economy Reporter Kim Cheol-hyun] The Korea Startup Forum (hereinafter referred to as Kospo) expressed regret on the 28th over the Fair Trade Commission's (hereinafter referred to as the FTC) decision to require the sale of Yogiyo as a condition for the corporate merger between Woowa Brothers and Delivery Hero (DH). They argued that this judgment ignores the dynamism of the digital economy and will have serious adverse effects on future innovative growth and the future of domestic startups.

In a statement released that day, Kospo said, "The FTC overlooked the fact that platform operators can easily enter the food delivery market based on network effects," and pointed out, "Open commerce operators are successively entering the food delivery market and online video service market, online video service operators are entering the live commerce market, distributors are entering the logistics business, and portal operators are expanding into various businesses?this is the current state of the digital economy."

Furthermore, Kospo stated, "The merger of Woowa Brothers, a leading domestic unicorn company, and the global company DH was not only the largest startup M&A in Korea but also an important milestone for global expansion," adding, "This FTC decision not only negatively affects the global valuation of our startups but also causes enormous losses to global expansion." Kospo continued, "Regardless of whether DH accepts the FTC's decision, it will have a negative impact on the digital economy and the overall startup ecosystem," and emphasized, "We must seriously recognize that both the process and outcome of this decision have hindered innovative growth and cast a dark shadow over the future of domestic startups."

This content was produced with the assistance of AI translation services.