Fair Trade Chief: "Current Regulations Need Improvement for Platform-Business Relationships"

Chairperson Joo Byungki Holds Meeting with Platform-Based Businesses

Joo Byungki, Chairperson of the Fair Trade Commission, identified commission fees and similar burdens as key issues that need to be addressed in the relationship between platforms and businesses operating on those platforms.

On November 13, Chairperson Joo made these remarks during a meeting in Jung-gu, Seoul, with representatives from the Korea Federation of Micro Enterprises, the Korea Foodservice Industry Association, and the Korea Franchise Association, all of whom represent businesses operating on various platforms.

He referenced last year's unsettled payment incidents involving TMON and Wemakeprice, saying, "As the platform market changes rapidly, I am acutely aware that the burdens and difficulties experienced by businesses operating on these platforms are by no means insignificant."

He further emphasized, "Issues such as commission fee burdens, unfair trade practices, and other unjust acts by platforms clearly demonstrate the need to improve the current regulatory framework governing these business relationships."

Chairperson Joo, who is currently preparing legislation for the Online Platform Act, stated that he would consider the future direction of platform policy after explaining the commonalities among the bills submitted to the National Assembly.

He explained that the proposed bills commonly include three elements: establishing specific types of prohibited conduct tailored to platform transactions in order to strictly enforce fair trade practices; strengthening transaction transparency to substantially ease the burdens on businesses operating on platforms; and enhancing transaction stability by imposing obligations to comply with payment settlement deadlines.

He also pledged, "By listening to the voices on the ground today, I will work together with stakeholders to consider the future direction of platform policy," adding, "I will do my utmost to create a fair platform market."

Representatives of businesses operating on platforms submitted several requests to Chairperson Joo, including the establishment of payment settlement deadlines and separate management obligations, the activation of win-win cooperation between platforms and businesses along with the necessary systems to support this, and the need to address the issue of excessive commissions imposed on small businesses.

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