"External Verification of News Search Algorithms"... Ruling Party Targets 'Monopolistic Portals'

There has been a call for an external monitoring body to verify the artificial intelligence (AI) algorithms used in portal product and news searches. Attention is focused on whether related legislation will gain momentum as the ruling party draws regulatory measures targeting 'monopolistic portal companies.'

On the afternoon of the 18th, Lawyer Jinwook Kim, head of the Korea IT Law Research Institute (Law Firm Juwon), presented measures to impose distribution responsibility on portals in shopping and news at a forum titled "Abuse of Market Dominance by Monopolistic Portal Companies and Infringement of Small Business Owners and Consumer Rights," hosted by the People Power Party Policy Committee.

In his presentation, Lawyer Kim stated, "Regardless of domestic or international portals such as Naver, Kakao, Google, and Amazon, it is necessary to strengthen internal procedures such as monitoring for each service provided by the portal companies, and especially to operate an external monitoring body on a permanent basis to verify filtering of exposure and arrangement of news and shopping search results."

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In particular, since news heavily depends on portals and the arrangement of articles through AI algorithms significantly influences public opinion formation, it is necessary to verify the design and operational values of AI and how they are set and changed. Lawyer Kim pointed out, "Portals refuse external disclosure of their algorithms citing 'trade secrets,' but if the portal's claim that 'the AI program autonomously learns and arranges content, so the results are value-neutral' is true, then even if the AI algorithms are disclosed, regardless of factors such as external hacking or internal manipulation, the results would still be value-neutral, so there is little problem."

He added, "If portals create their own News Algorithm Verification Committee and conduct closed-door reviews, verification of mechanical defects may be possible, but the direction and results of verification are highly likely to be influenced by the portal's intentions," emphasizing that "concerns about various abuses arising from the disclosure of portal AI algorithms can be fully resolved through technical measures such as strengthening the portal's AI algorithm design capabilities and applying security technologies."

Vice Chairman Soonjong Kwon of the Korea Federation of Small and Medium Business Owners also pointed out at the forum that Naver was fined hundreds of billions of won for market dominance abuse in shopping and real estate sectors and unfair customer inducement in the video sector, and recently Kakao Taxi was fined 25.7 billion won for manipulating its dispatch algorithm.

Vice Chairman Kwon advocated ▲establishing strict competition laws for market-dominant portals ▲strong legal application against corporate behaviors that evade responsibility to separate technology escape ▲expanding information disclosure obligations and legislating consumer information disclosure rights ▲expanding direct regulation of large market-dominant portals.

The People Power Party plans to gather opinions on monopolistic portals at the forum and then proceed with legislation. On the 28th of last month, People Power Party Secretary-General Chulgyu Lee stated at a party meeting, "We will push for legal amendments to eradicate behaviors that exploit the fact that giant companies like Naver dominate platforms and pass damages onto small business owners and consumers."

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