[2021 National Audit] Seongwook Jo: "We Will Strictly Respond to Platform Monopoly Abuse That Hinders Innovation in New Industries"

Report on Key Business Status at the Political Affairs Committee Audit

Jongwook Cho, Chairman of the Fair Trade Commission. (File photo)

[Sejong=Asia Economy Reporter Joo Sang-don] Cho Sung-wook, Chairman of the Korea Fair Trade Commission (KFTC), stated on the 5th, "We will strictly respond to the abuse of monopoly power by platform operators that hinder innovation in new industry sectors and strive to create a consumer-friendly policy environment."

On the same day, Chairman Cho reported the major progress and policy directions of the KFTC at the National Assembly's Political Affairs Committee audit.

Chairman Cho identified six core tasks: ▲ Establishing fair trade order in the digital economy sector ▲ Creating an inclusive market environment where both parties cooperate and coexist ▲ Establishing sound ownership, governance, and transaction order in large business groups ▲ Forming a market environment and transaction practices that promote innovation ▲ Building a system that institutionally guarantees consumer rights ▲ Strengthening the infrastructure for fair trade policy implementation.

Chairman Cho explained, "We are working to establish a fair trade order in the digital economy sector," adding, "We have prepared and submitted to the National Assembly the 'Online Platform Fairness Act' to create a fair and innovative platform ecosystem, and we are pushing for a complete revision of the 'E-commerce Act' to strengthen consumer protection responsibilities of online platforms."

The KFTC is also promoting policies to create an inclusive market environment where both parties cooperate and coexist, and to establish sound ownership, governance, and transaction order in large business groups. So far, it has supplemented and prepared institutional protections for small and medium-sized enterprises and small business owners who are disadvantaged in transactions, such as easing technical data requirements in subcontracting, mandating confidentiality agreements, and introducing court orders for data submission. Going forward, the KFTC plans to continuously expand and improve the introduction of standard contracts for subcontracting, franchising, and agency industries and encourage their use. By the end of this year, it also plans to establish detailed criteria for judging unfair practices such as refusal of transactions, conditional transactions, and abuse of transaction status under the Franchise Business Act.

Additionally, to establish sound ownership, governance, and transaction order in large business groups, the KFTC will prepare and implement the 'Voluntary Compliance Standards for Work Sharing' for the IT service sector in December this year. Through amendments to the Enforcement Decree of the Fair Trade Act, it will also mandate the submission of internal transaction details for three years after separation for newly established companies separated from large business groups by relatives.

Chairman Cho said, "To successfully implement various policies, we will strengthen the infrastructure for fair trade policy promotion," adding, "We will enhance cooperation with affiliated organizations, related ministries, and local governments to ensure prompt correction of legal violations and substantial damage relief, and continue to pursue institutional improvements to activate alternative dispute resolution systems."