Lee Nak-yeon Calls IT Industry to Discuss 'Profit Sharing System'... Industry Shows Reluctance

Lee Nak-yeon, Leader of the Democratic Party of Korea

[Asia Economy reporters Buaeri and Jeon Jinyoung] On the 22nd, Lee Nak-yeon, leader of the Democratic Party of Korea, invited associations related to IT companies such as Naver and Kakao to discuss the 'profit-sharing system.'

Heo Young, spokesperson for the Democratic Party, told reporters after the 'Video Conference for Win-Win Cooperation with Platform Companies' held at the National Assembly that day, "We cleared up misunderstandings about the profit-sharing system," adding, "We agreed that it is not a means to force companies to share profits but a policy to help companies, strengthen incentives, and provide support."

In his opening remarks, Lee said, "IT platform companies like Naver, Kakao, and Baedal Minjok have taken the lead in lowering and exempting sales commissions for small business owners, as well as providing free online education and video conferencing systems," and added, "In that context, I want to hear opinions on how to more effectively develop coexistence and solidarity."

Attending the meeting from the industry were Park Seong-ho, Secretary General of the Internet Enterprise Association, Choi Seong-jin, CEO of Korea Startup Forum, and Jang Seong-won, Secretary General of the Korea Fintech Industry Association. The Internet Enterprise Association includes companies such as Naver and Kakao.

Originally, the Democratic Party invited four companies?Naver Financial, Kakao Pay, Baedal Minjok, and Riot Games?to this meeting, but it is known that the companies expressed reluctance to attend. The IT industry is under considerable pressure regarding being mentioned as targets of the profit-sharing system. The criteria for having profited from the COVID-19 pandemic are unclear, and companies face the burden of having to bear business risks.

An IT industry official said, "From a company's perspective, this is a ridiculous and daunting situation," adding, "If the government creates a system and tells companies to share profits, it increases external business risks for companies. It could also have a negative impact from the viewpoint of foreign investors." The associations attending the meeting emphasized that platform companies are already making efforts such as commission exemptions and supporting sales channels for small business owners.