"7 out of 10 Small Business Owners Using Online Platforms Bear Fees and Advertising Costs"

Korea Federation of SMEs Announces Survey on Platform Fairness Awareness
"Enactment of Online Platform Fairness Act" 40.2% Response
Proposal for Standard Contract Drafting and Cost Support for Small Businesses

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] More than 7 out of 10 small business owners using online platforms feel burdened by platform fees and advertising costs, according to a recent survey.

The Korea Federation of Small and Medium Business announced the results of the 'Small Business Owners' Perception Survey on Platform Fairness,' conducted from the 12th to the 21st among 500 small business owners operating on online platforms, on the 23rd.

Regarding the cost levels such as online platform fees and advertising expenses, 72.4% of respondents said they felt burdened, while only 7.4% responded that the costs were appropriate.

When asked about delivery fees and promotion costs borne through delivery applications, 72.8% answered that the costs were burdensome, significantly higher than the 7.4% who thought the costs were appropriate.

In response to how they would react if online platforms raised fees and advertising costs due to reasons such as inflation, the answers were in order: ▲raise product or service prices (37.6%), ▲no way to respond (34.0%), ▲move to a similar platform (17.6%).

Preferred measures to minimize online platform costs (multiple responses) included ▲introducing a fee rate cap based on the size and sales of tenant businesses (41.0%), ▲prior agreement on fee rates through the introduction of a standard contract (31.0%), and ▲negotiating fee costs through collective bargaining rights (30.6%).

Among the respondents, 6 out of 10 companies (59.2%) said it was necessary to prepare and provide a standard contract including minimum fee imposition criteria and payment settlement methods to prevent unfair trade.

Additionally, urgent measures for fair online platform markets (multiple responses) included the enactment of the Online Platform Fairness Act (40.2%) and institutionalizing disclosure of transaction conditions of tenant businesses (40.2%).

Areas where respondents hope for future expanded cooperation with online platforms were ▲support for costs of small businesses (40.2%), ▲expansion of sales channel support (35.4%), ▲marketing education (16%), and ▲digital capability enhancement (8.2%), in that order.

Choo Moon-gap, Head of Economic Policy at the Korea Federation of Small and Medium Business, emphasized, "The issue of monopolization by online platform companies has recently been reexamined," adding, "Since institutional improvements to minimize damage to consumers and small business owners are urgent, the Online Platform Fairness Act must be enacted promptly."

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