Lee Jae-myung: "Platform Companies' Abuse of Power Leaves Small Business Owners Helpless, Will Stop Octopus-like Expansion in Alley Markets"

"Strengthening Collective Bargaining and Negotiation Rights"
"Establishment of Fair Platform Social Dialogue Organization"
"Compensation for Small Business Owners' Rent and Labor Costs"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] Lee Jae-myung, the leading presidential candidate from the Democratic Party of Korea and Governor of Gyeonggi Province, pledged to curb the sprawling expansion of platform companies into neighborhood markets and to guarantee the rights of small business owners to form associations.

On the morning of the 10th, Lee held a press conference in Mapo-gu, Seoul, where he announced his policy pledge to protect the rights of the "Eul (乙)"?a term referring to the weaker party in a contract. He stated, “The management difficulties and excessive debts faced by small business owners and self-employed individuals shake the foundation of the livelihood economy and deepen polarization,” explaining the rationale behind his policy announcement.

The core focus is on restraining platform companies. He emphasized, “Small business owners using platforms are helplessly subjected to the tyranny of platform companies that impose fees, advertising charges, additional services, sales prices, and transaction conditions,” adding, “These problems arise because laws and systems have not kept pace with the rapid growth of the platform industry.”

To address these issues, Lee pledged to guarantee the rights of small business owners affiliated with online platforms to form associations and negotiate collectively. Once an association is formed and requests negotiations, the platform companies will be obligated to commence negotiations and comply with the results.

Lee said, “We will substantially strengthen the currently ineffective rights to form associations and negotiate,” and stressed, “We will enable the central and local governments to register associations of the 'Eul' parties to secure legal status and enhance negotiation rights.” He also promised to establish a system guaranteeing the rights to form associations and negotiate for small business owners and self-employed individuals operating in large marts and department stores.

The policy pledge also includes measures to prevent platform companies from expanding like an octopus into neighborhood market areas. Highlighting the success of Gyeonggi Province’s public delivery app ‘Baedal Teukgeup,’ he expressed intentions to expand such services.

He explained, “Based on the growth know-how of Baedal Teukgeup, we will expand public platforms nationwide and build an integrated operation system,” adding, “We will develop and advance various win-win and operational models that benefit platform franchisees, workers, and consumers alike.”

Furthermore, to overcome the crisis caused by COVID-19, Lee expressed his intention to ease the rent burden on tenant merchants. He emphasized, “Until the COVID pandemic subsides, we will prohibit contract termination, refusal to renew leases, and forced eviction due to rent arrears by tenant merchants,” and added, “We will also take measures to prevent the forced execution of overdue monthly rent.” Alongside this, Lee proposed compensation for losses, financial support for small business owners and the self-employed, and the expansion of local currency issuance as part of his pledges.

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