6 out of 10 Consumers Oppose Online Platform Delivery Regulations
Opposition to Regulation at 61.4%, 2.3 Times Higher Than Support at 26.2%
Main Reasons for Opposition: Deprivation of Consumer Choice, No Protection Effect for Small Business Owners
[Asia Economy Reporter Kim Cheol-hyun] Recently, as the National Assembly is discussing legislation to regulate online platforms, it has been found that 6 out of 10 consumers oppose regulations on delivery services of online platforms such as Coupang, Market Kurly, SSG Delivery, and B Mart. Moreover, even if regulations are imposed, 72.2% of consumers responded that they would not use local marts or convenience stores.
According to the results of the "Consumer Awareness Survey on Regulation of Online Platform Delivery Services" announced on the 22nd by the Korea Startup Forum, 61.4% of consumers responded that they "oppose" regulation of online platform delivery services. The stance of "supporting" regulation was only 26.2%, showing that opposition to regulation was about 2.3 times higher.
The main reason for opposing regulation was that "consumer choice would be deprived, harming benefits," which accounted for 47.6%. The response that "even if regulated, there would be no protective effect for small business owners" accounted for 31.6%. The opinion that "job creation and economic growth would be hindered" also recorded 16%.
In fact, even if regulations are imposed, 72.2% of respondents said they would not use local marts or convenience stores. Among them, 48.2% responded that they would use other online platform delivery services that are not regulated, and 24% said they would reduce consumption altogether. Consumers responded that the most necessary policy for small business owners was "strengthening competitiveness such as entering online platforms" (45.2%), while only 6.2% said that regulation of online platforms was necessary, which was very low.
Also, the main reason consumers use online platform delivery services was "because it is convenient," at 67.8%, followed by "because of a variety of items" and "because face-to-face service is unsafe due to COVID-19," which were 13.5% and 11.2%, respectively. 88.6% of respondents predicted that these online platform delivery services will continue to grow in the future.
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Choi Sung-jin, CEO of the Korea Startup Forum, pointed out, "The results of this public opinion survey reveal that platform regulation bills only harm consumer benefits and have no effect on protecting local commercial districts," adding, "We must not overlook that online platforms are contributing to expanding sales channels for local small business owners and creating numerous jobs in the logistics industry, among various positive functions."
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