South Korea's Platform Regulation Dilemma Amid US Trade Tensions

Last month, South Korea and the U.S. reached an agreement on the details of South Korea's planned $350 billion investment package tied to a broader trade deal, reports Yonhap news agency.

During the negotiations, Washington reportedly raised concerns over several non-tariff measures adopted by Seoul, including its regulatory approach toward online platforms.

"It remains essential to establish fair and transparent business practices in the platform sector that is deeply embedded in people's daily lives," Ju Biung-ghi, chairman of the Fair Trade Commission (FTC), told reporters.

Ju, however, noted that "it would be difficult" to introduce related legislation for the time being as "trade issues are still involved," apparently signalling difficulties tied to Seoul's trade relations with Washington.

"However, there are still ways to regulate platforms under the existing legal system," he added.

President Lee Jae Myung has pledged to curb abuses of market dominance by global online platform operators through new regulations, including limits on commission fees and bans on unfair practices.

In addition, Ju emphasised that small and venture businesses, small merchants and consumers must be guaranteed full rights to share in the opportunities that innovation provides.

Regarding Baedal Minjok, or Baemin, one of the country's largest food delivery platforms, Ju said the FTC is reviewing whether the company violated fair trade laws and determining the appropriate level of sanctions.

Baemin is accused of pressuring restaurants to use the "Baemin Delivery" service even when they preferred to use their own couriers or those of other companies.

The watchdog is expected to issue a final decision, which could include corrective orders or fines for Woowa Brothers Corp., Baemin's operator, after receiving the company's formal opinion.

"The FTC will revise its policy direction and strengthen its organisation and capabilities to correct imbalances among market participants and create a fair and competitive market environment," Ju said.

- IANS