"Measures Needed to Address 'Subscription Economy Recurring Payments and SNS Undisclosed Advertising' Harms"

Results of the Internet Mutual Growth Council

[Asia Economy Reporter Cha Min-young] A social consensus has formed that urgent measures are needed to support users who have suffered damages while using new types of information and communication (IT) services such as subscription economy and live commerce. There were also strong calls for improving the vertical relationship between monopolistic app market operators and content providers through a government-led cooperation model.

The Korea Communications Commission (KCC) announced that the "3rd Internet Win-Win Development Council," established in July last year, submitted a report on its six months of operation to the KCC on the 5th.

The council is an advisory body composed of 31 members, including consumers, civic groups, experts in telecommunications, media, law, and economics, domestic and international companies, research institutions, and government officials. It was formed to discuss policy measures to strengthen a user-centered internet ecosystem and activate new services.

The council proposed ▲ measures to respond to damages suffered by users of new types of services and to enhance user rights ▲ strengthening a user-centered internet ecosystem ▲ and plans to activate 5G and new services.

As new types of services increase, the council emphasized the urgent need to prepare countermeasures for related damages. It highlighted ▲ strengthening information provision to protect subscription economy service users ▲ the necessity for platform operators’ voluntary management measures to respond to user damages related to covert advertisements and false or exaggerated advertising in live commerce. Additionally, ▲ it requested institutional improvements to provide users with explanations about algorithms and grant them the right to choose.

There was also a call to strengthen a user-centered internet ecosystem. The council reached a consensus that ▲ dominant app market operators should be prohibited from preventing the use of alternative payment methods or forcing or inducing content providers to refuse other app market operators. Furthermore, ▲ it recommended the discovery of government-led cooperation models to encourage active participation and provide incentives for companies to promote digital inclusion.

There was also agreement on the need to activate 5G and new services. ▲ Although there were differences of opinion on specific measures such as government-led promotion of 5G infrastructure investment and discovery and support of core 5G services, most agreed on the necessity of activating 5G services. Meanwhile, ▲ it proposed the need to establish legal grounds to expand MyData into various industries to promote the creation of new services.

The KCC stated, "We expect this report to help prepare various policies in response to changes in the internet environment, and we will seek concrete implementation plans going forward." The report can be found on the websites of the KCC and the Korea Information Society Development Institute.