Sehee Oh: "'Standard Contract' Mandatory in Onple Act... Resolving Unfair Transactions" (Comprehensive)

Sogongyeon, 1st Anniversary Press Conference on 5th Inauguration
"Minimum Wage Should Be Differentiated...Union Opposition"
"Protecting Small Business Rights Reflecting Field Voices"

[Asia Economy Reporter Kim Bo-kyung] Oh Se-hee, president of the Korea Federation of Micro Enterprise (photo), expressed his determination on the 5th to push for the enactment of the Online Platform Fairness Act (Onple Law), stating that unfair transactions between online platforms and small business owners continue.

At a press conference marking his first anniversary in office held at the Forest Vision Center in Yeouido, Seoul, President Oh said, "We will reintroduce the Onple Law, which is currently pending in the National Assembly, by adding provisions to prevent unfair transactions such as the preparation of a standard transaction contract and restrictions on excessive fees."

Since the initial proposal by Democratic Party lawmaker Song Gap-seok in July 2020, a total of nine Onple Laws have been proposed in the National Assembly. On this day, the Federation proposed that the Onple Law should include ▲mandatory preparation and drafting of standard contracts ▲disclosure of criteria for calculating fees and advertising costs ▲granting of rights to form associations and negotiate ▲restriction on neighborhood commercial district platforms' entry ▲introduction of a platform coexistence index.

President Oh said, "In the case of accommodation platforms like Yanolja, when consumer prices are discounted, it is often the businesses, not the platform, that bear the cost," adding, "We will add parts that can improve unfair transactions, reintroduce the bill, and strive for its passage."

He also maintained his stance that the minimum wage should be applied differentially by industry and size, and criticized the labor sector. President Oh said, "Although the current Minimum Wage Act includes provisions allowing differentiated application by industry, it cannot be applied due to opposition from labor unions," and added, "Due to continuous minimum wage increases, business owners feeling the burden of labor costs are reducing hiring and expanding the introduction of kiosks."

Furthermore, he argued that the Minimum Wage Act should be amended to consider the employer's ability to pay when deciding the minimum wage and to establish grounds for differentiated application by size.

Regarding the previously controversial abolition of mandatory closure days for large discount stores, he predicted, "The government will not re-pursue the abolition of mandatory closure days unless a coexistence plan between small business owners and large discount stores is prepared."

He also pointed out, "Quasi-large food material marts of about 1,000 pyeong in size are originally wholesale businesses run by merchants, but they are being operated like large discount stores, which is problematic," and added, "They are pressuring small business suppliers to lower costs and sell cheaply."

In addition, he expressed his determination to lead the retroactive application of loss compensation for small business owners through amendments to the Act on the Protection and Support of Small Business Owners (Loss Compensation Act) and to establish a social safety net (mutual aid) reflecting demand-centered needs.

President Oh emphasized, "Until now, we have acted as a top-down government support role, but from this year until 2027, we will transform into an organization that actively protects the rights and interests of small business owners by incorporating voices from the field in a bottom-up manner and linking them to policies."

He also shared plans including ▲establishing a one-stop support center that performs systematic management functions such as small business startup, closure, recovery support, and digital education ▲creating a policy research institute to build a database to prepare policies demanded on the ground ▲strengthening the digital capabilities of small business owners.