"Naver Shopping's Market Dominance Abuse? Consumer Benefits Must Also Be Considered"

Chae I-bae, former member of the Minsaeng Party

[Asia Economy Reporter Bu Aeri] As the Korea Fair Trade Commission (KFTC) is about to decide on the level of sanctions against Naver's monopolistic behavior in the online shopping market, claims have emerged that "the judgment on market dominance is ambiguous and consumer benefits should be considered."

Former Minsaeng Party lawmaker Chae I-bae appeared on MBC Radio on the 18th and said, "(The KFTC) should first evaluate whether Naver holds a market-dominant position," adding, "While Naver offers shopping services, so do Coupang, Auction, and offline retailers like department stores selling products online. Considering the market broadly, it can be ambiguous to judge whether Naver has market dominance."

He continued, "Large companies like Naver have many businesses. When multiple businesses operate together, they can create synergy effects and positive profits, so there is also the question of whether we should block these."

Former lawmaker Chae emphasized, "Although there are negative views about Naver's growth, the most important thing is the consumer."

He stated, "If consumer benefits improve, that should be the standard, and we need to judge whether Naver's actions harm consumers or reduce any benefits," adding, "From Naver's perspective, they could argue, 'Aren't we actually providing services that enhance consumer convenience?'"

Furthermore, he said, "With huge multinational shopping malls like Google and Alibaba in the market, it would be unfair to regulate only Naver excessively, so there is also an issue of fairness," and added, "(The KFTC) will discuss this thoroughly and reach a conclusion."

Meanwhile, eBay Korea reported to the KFTC that "Naver abused its market-dominant position by prioritizing the exposure of products or services from businesses using its payment method (Naver Pay) at the top of the search window while operating its shopping and real estate services." The KFTC is set to determine whether Naver abused its market dominance and decide on the level of sanctions.