Yoon: "Kakao, National Backbone Network... Fair Trade Commission Reviewing Monopoly Issues" (Comprehensive)

-New Government May Change 'Online Platform Self-Regulation' Policy
-Concerns Over Market Distortion Like Monopoly and Oligopoly, Yoon Says "Fair Trade Commission Will Review"

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] President Yoon Suk-yeol emphasized on the 17th that the Kakao communication network is "a network operated by a private company, but in fact, from the perspective of the people, it is no different from a national backbone communication network." This can be interpreted to mean that while the autonomy and creativity of companies must be guaranteed, the government can intervene if the market is distorted due to monopolies or other reasons. There is a possibility of changes in the Yoon administration's policy of 'online platform self-regulation.'

On the morning of the same day, President Yoon met with reporters on his way to the Yongsan Presidential Office and said, "I think most of the people who use KakaoTalk had a hard time due to the suspension of Kakao communication network services this weekend."

In particular, President Yoon effectively defined the Kakao communication network as a 'national backbone communication network.' Over the weekend, President Yoon personally instructed the Minister of Science and ICT to monitor the situation and review how the government should respond to prevention and post-incident measures, which is in the same context. President Yoon added, "We will discuss well with the National Assembly so that the people will not be inconvenienced in the future."

When asked, "Kakao has a significant market share in messenger, taxi, etc., and there are talks of monopoly. Is the government considering intervention or improvement?" President Yoon answered, "Yes." He continued, "I have a free market economy mindset that respects corporate autonomy and creativity, but it is premised on the market itself being a fair competition system where resources and income are reasonably distributed. If the market is distorted due to monopoly or severe oligopoly, especially when it reaches the level of a national infrastructure, I believe the state must, of course, take necessary institutional measures for the benefit of the people." President Yoon added, "I understand that the Fair Trade Commission is reviewing such issues."

Following President Yoon's remarks that day, a comprehensive re-examination of the 'online platform self-regulation system' is expected. It is interpreted as "principally self-regulation, but minimum regulation when necessary." Political circles are also expected to continue disputes over the Yoon administration's policy direction. The opposition party may reintroduce online platform regulation bills. Jo Seung-rae, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee from the Democratic Party of Korea, stated in a press release the day before, "Compared to the rapid shift of the weight of life to online due to COVID-19, related policies and regulations have not kept pace. The need to check and supplement vulnerabilities of online platforms such as stability and security has been reaffirmed," and announced that they will scrutinize the problems of the online platform self-regulation system promoted by the new government.

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