The South Korean Fair Trade Commission has initiated an investigative survey to examine the business activities of leading platforms and their associated companies within the delivery, marketplace, and lodging industries.
On the 13th, the Fair Trade Commission stated that it will launch a research initiative starting from that day and continuing until November 12, aimed at examining the transaction conditions between major platforms and their affiliated businesses, as well as instances of unfair trade practices. This study is being carried out to gather basic data that will be utilized in developing future online platform policies.
As per the Fair Trade Commission, with the online platform market experiencing significant growth in recent years, conflicts between platform operators and associated businesses have also kept rising. The count of disputes related to online platforms that the Fair Trade Dispute Mediation Committee received rose 4.3 times, going from 103 cases in 2021 to 445 cases in the previous year.
The research project focuses on the three areas where platform-related complaints are most common—delivery services, open markets, and accommodation. Platforms like Baedal Minjok, Coupang Eats, Coupang, Gmarket, 11st, and Yeogi Eottae are anticipated to be part of the study.
The Korea Fair Trade Commission mentioned that it is concentrating on analyzing the market structure and transaction conditions of the three industries, as well as recognizing the primary challenges encountered by affiliated companies. The commission intends to reassess developments in the market environment since its 2022 research initiative on the ‘Online Platform Sector Fact-Finding Survey’ and obtain a clearer understanding of the real burdens faced by affiliated businesses through surveys.
Specifically, the commission intends to examine the challenges encountered by affiliated businesses related to expenses like commission charges, incidents of damage during transactions, and their encounters with mediation and resolution processes when conflicts occur. Furthermore, to complement the surveys conducted with affiliated businesses, the commission will carry out written fact-gathering inquiries directed at platform operators.
The committee intends to examine platform operators concerning the structure and level of commission fees and advertising expenses, the performance of platform transactions, data-related policies and guidelines, and the processes for resolving conflicts when they arise.
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