Is Online Platform Legislation Challenging Amid US Trade Issues?
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Synopsis
South Korea's antitrust chief reveals challenges in enacting new regulations for global online platforms due to shifting trade dynamics with the U.S. The Fair Trade Commission emphasizes the importance of fair practices in the sector while addressing potential abuses by major players like Baemin.
Key Takeaways
- South Korea faces challenges in regulating global online platforms.
- Trade relations with the U.S. complicate legislative efforts.
- FTC emphasizes fair practices in the platform sector.
- President Lee aims to address market dominance by platforms.
- Investigations into Baemin highlight issues of fair trade.
Seoul, Nov 23 (NationPress) The chairman of South Korea's antitrust authority has highlighted the challenges of enacting new laws aimed at better regulating international online platforms, particularly in light of evolving trade relations influenced by U.S. policies. Recently, South Korea and the U.S. finalized an agreement regarding a significant $350 billion investment initiative that is part of a larger trade arrangement, according to Yonhap news agency.
During these discussions, concerns were raised by Washington regarding several non-tariff regulations implemented by Seoul, specifically its approach to online platform governance.
“It is crucial to establish equitable and transparent business operations within a platform sector that plays a vital role in everyday life,” stated Ju Biung-ghi, the Fair Trade Commission (FTC) chairman, during a press briefing.
Despite this, Ju acknowledged that “it would be challenging” to push for related legislation at this moment since “trade issues are still in play,” implying complications in Seoul's economic ties with Washington.
“Nonetheless, avenues for regulating platforms exist within the current legal framework,” he added.
President Lee Jae Myung has committed to addressing abuses of market power by global online platform operators through new regulations, which would include restrictions on commission rates and prohibitions on unfair practices.
Ju also stressed the necessity for small and emerging businesses, local merchants, and consumers to have their rights fully protected so they can benefit from innovative opportunities.
In relation to Baedal Minjok, or Baemin, one of the leading food delivery services in the nation, Ju mentioned that the FTC is currently examining whether the company has infringed fair trade regulations and is deliberating on the appropriate sanctions.
Baemin faces allegations of coercing restaurants into utilizing the “Baemin Delivery” service even when they preferred to engage their own couriers or those from other services.
The regulatory body is set to deliver a conclusive judgment, which may involve corrective actions or penalties for Woowa Brothers Corp., the operator of Baemin, after reviewing the company’s formal response.
“The FTC aims to revise its policy directions and enhance its organization and capabilities to rectify market imbalances and foster a fair competitive environment,” Ju asserted.
Point of View
I believe that the challenges in regulating online platforms are significant yet necessary to ensure fairness in the digital economy. The balancing act between trade relations and consumer protection is crucial for fostering innovation while safeguarding small enterprises.
NationPress
23/11/2025
Frequently Asked Questions
What are the current challenges in regulating online platforms in South Korea?
The main challenges include trade relations with the U.S., which complicate the introduction of new legislation aimed at regulating online platforms effectively.
How does the U.S. trade policy impact South Korea's regulatory efforts?
The U.S. trade policy influences South Korea's regulatory framework, particularly regarding non-tariff measures affecting online platforms.
What actions has President Lee Jae Myung proposed to address market dominance?
President Lee has proposed new regulations aimed at curbing market dominance by global online platforms, including limits on commission fees and bans on unfair practices.
What is the FTC's stance on Baemin and its practices?
The FTC is currently reviewing Baemin for potential violations of fair trade laws, particularly regarding pressure on restaurants to use its delivery services.
How does the FTC plan to ensure fair competition among market participants?
The FTC plans to revise its policy direction and strengthen its organization to correct market imbalances and promote a competitive market environment.
