Dispute Mediation by Fair Trade Mediation Agency Surges 66% in Three Years... Online Platform and Franchise Disputes Intensify

Disputes in Online Platforms and Franchise Sectors on a Clear Upward Trend
Subcontracting Cases Slip 6% amid Decline in Construction Volume

Unfair trade disputes are rapidly increasing, especially in sectors closely related to small business owners such as online platforms and franchise businesses. Last year, the number of dispute mediation applications filed with the Korea Fair Trade Mediation Agency surged by more than 60% compared to three years ago, reaching an all-time high.

On May 14, the Korea Fair Trade Mediation Agency announced in its "2025 Dispute Mediation Status" report that a total of 4,726 cases of dispute mediation applications were received last year. This figure represents a 17% increase from 4,041 cases in 2024 and a 66% rise compared to 2,846 cases in 2022.

By category, the fair trade sector accounted for the largest share with 2,424 cases, followed by subcontracting (1,040 cases), franchise businesses (691 cases), and standard contract terms (451 cases). Notably, fair trade disputes increased by 35% year-on-year, with online platform-related disputes rising by 32%, driving the overall upward trend. Disputes involving online platforms soared nearly fourfold from 111 cases in 2022 to 440 cases in 2025.

The franchise business sector also saw an 18% increase from the previous year, with 691 cases received. Most disputes were between convenience store franchisees and headquarters, commonly involving excessive penalty claims—categorized as unfair indemnification obligations (23.3%)—and disputes related to unjust contract termination or cancellation.

In contrast, the subcontracting sector recorded a 6% decrease from the previous year. While the manufacturing sector remained at previous levels, the construction sector saw disputes decline by 10.2%, attributed to a downturn in the housing construction market.

Mediation performance also reached a record high. The total number of processed cases last year was 4,407, marking a 15% increase from the previous year, with mediation agreements reached in 1,709 cases. The combined total of compensation amounts and litigation costs saved—representing both direct and indirect relief—was tallied at 122.084 billion won.

The agency also actively implemented policies by carrying out 217 "on-site dispute mediation services"—a 63% increase from the previous year—directly reaching small business owners who are unable to visit in person.

The agency stated, "Difficulties for small and medium-sized business operators are expected to persist this year due to high inflation and a sluggish economy, which may lead to a further increase in disputes. We will enhance effectiveness by expanding personnel and professional capabilities, and we will actively support the passage of the 'Fair Trade Dispute Mediation Act' in the National Assembly, which aims to integrate mediation systems currently dispersed across six different laws."