Announcement of Platform Self-Regulation Measures... Transparent Disclosure of Search Criteria (Comprehensive)

Improvement of Business Practices for Open Market Sellers
Including Measures to Address Consumer Group Harm
Enhancing Transparency in Platform Search and Recommendations

The private autonomous organization for platforms held the 'Platform Autonomous Organization Self-Regulation Plan Presentation' at 2 p.m. on the 11th, announcing the self-regulation plans prepared by its four subcommittees (Gap-Eul, Consumer/User, Data/Artificial Intelligence, Innovation Sharing/Governance).

Launched on August 19, the private autonomous organization for platforms is a discussion body formed to develop self-regulation plans in the platform market by the private sector itself. It consists of four subcommittees that have been discussing self-regulation plans by each subcommittee.

At today's presentation, the self-regulation plans prepared by the four subcommittees were announced in sequence. Specifically, the self-regulation plan for the open market sector (Gap-Eul subcommittee), rapid response plan for consumer group damages in the open market (Consumer/User subcommittee), self-regulation principles to enhance transparency of platform search and recommendation services (Data/AI subcommittee), and eight principles to enhance the social value of platforms (Innovation Sharing/Governance subcommittee) were presented.

Improvement of Contract Practices Between Open Market and Entry Sellers

From now on, open market operators must notify entry sellers of the specific reasons for contract termination at least 15 days before the scheduled termination date. To change important contract terms such as usage fees, commissions, or advertising costs for entry sellers, notification must be given at least 30 days in advance (14 days in the case of advertising cost changes). To resolve disputes quickly and fairly, an 'Open Market Autonomous Dispute Mediation Council (tentative name)' will also be established in the second half of the year. Open market operators include Naver, Kakao, Coupang, Gmarket, 11st, Interpark, Wemakeprice, Tmon, Musinsa, and Lotte ON.

Open market operators have also proposed measures to promote coexistence and ease burdens with entry sellers. Kakao will freeze its commission policy within the year and expand preferential commission policies for small business owners. Naver has established dedicated organizations for small business coexistence, such as the 'Small Brand Business Office' and 'Project Kkot Secretariat,' to continuously discover and operate support and cooperation plans for small business owners. Coupang is promoting selected services for small business owners.

Eliminating Damage from 'Muk-Twi Shopping Malls'

To minimize consumer damage, consumer groups and open markets will autonomously and proactively share information related to consumer group damages quickly. This aims to minimize further spread of consumer damage. Fraudulent shopping mall damages that embezzle consumer payment funds occur nationwide on an ongoing basis and spread rapidly, so it is considered important to block consumer inflow early. Until now, the Fair Trade Commission could issue suspension orders and close shopping malls under the 'Temporary Suspension Order' system (Article 32-2) of the Electronic Commerce Act. However, it usually took several months to take action, during which damage continued.

Additionally, a 'Consumer Group Damage Response Council' will be created and operated. The council consists of open market operators, business groups, and consumer groups. The steering committee will meet regularly every six months. Specific operating procedures such as the deliberation and resolution methods of the steering committee will be prepared through consultation.

Transparent Disclosure of Search and Recommendation Criteria

The 'Self-Regulation Principles to Enhance Transparency of Search and Recommendation Services' aim to improve the transparency and reliability of internet search and recommendation services and promote user rights. Internet search service providers such as Naver and Kakao must voluntarily disclose the major variables used to determine search exposure order and recommendation criteria. Disclosure should be made in locations easily accessible to users, such as search/recommendation results and customer centers.

Internet search providers must explain the major variables that make up the search exposure order and recommendation criteria using terms that users can easily understand. However, disclosure is not required if it causes harm to users by third parties or infringes on the business secrets of the provider.

Providers will cooperate when the Data/Artificial Intelligence (AI) subcommittee of the platform private autonomous organization (later the permanent platform autonomous organization) inspects compliance with the self-regulation principles. Necessary matters regarding compliance inspections will be separately determined. Providers recommended for correction based on inspection results must confirm related matters and report improvement and action results to the Data/AI subcommittee of the platform private autonomous organization.

Lee Jong-ho, Minister of Science and ICT, said, "This occasion is significant as it is a declaration of direct implementation of principles for enhancing transparency and coexistence of platform services led by the private sector, while self-regulation is being promoted as a national policy to create a platform ecosystem where innovation and fairness harmonize." He added, "We must continue to improve and develop necessary parts so that each principle becomes a basic rule that the platform industry must comply with and spreads throughout the industry."

Han Ki-jung, Chairman of the Fair Trade Commission, said, "Since the self-regulation plan was prepared based on the voluntary participation of each platform operator, we can expect a high level of compliance willingness." He added, "I hope that a culture of coexistence based on the autonomous efforts of platform operators will take root well in the market so that Korea's platform market ecosystem can be reborn in a healthier form."

Kim Hyo-jae, Standing Commissioner of the Korea Communications Commission, said, "Although the introduction of self-regulation was a challenging task for everyone, it is meaningful that results were achieved through voluntary discussions and cooperation in the private sector." He urged, "Please continue to make efforts in the private sector to ensure that platform user protection through self-regulation is not hindered."

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