Startup Industry: "Platform Industry Trapped by Regulations, Promotion Strategy Needed"

Report Criticizes Korea's Regulation-Centered Approach to Platform Industry
Calls for Policy Shift Toward Development and Innovation
"Now Is the Time to Consider Nurturing the AI Industry," Says Lee Gi-dae

Startup Alliance announced on the 3rd that it has published a report titled "Korean Platform Industry Trapped in Regulation, Now Needs Promotion Strategy." The report highlighted the strategic importance of the platform industry in the era of the global digital economy. It also critically analyzed that domestic platform regulation discussions are at odds with global trends, weakening the competitiveness of Korean companies.

Startup Alliance publishes report 'Korean Platform Industry Trapped in Regulation, Now Needs Promotion Strategy' [Photo by Startup Alliance]

The report pointed out that while major countries such as the United States and China are introducing strategic regulations to protect and nurture their domestic platform companies, Korea is taking a regulation-centered approach that imposes excessive burdens on domestic companies.

Currently, in the 22nd National Assembly, 17 related bills including the "Online Platform Transaction Fairness Act" and the "Monopoly Regulation Act" have been proposed. The Fair Trade Commission reiterated its intention to strengthen regulations on the platform industry in its New Year's address, Startup Alliance explained. This not only disadvantages domestic companies that have to compete with overseas giant platforms but also deepens issues of reverse discrimination, calling for in-depth reconsideration.

Furthermore, it emphasized that the policy paradigm of the domestic platform industry should shift toward promoting development and innovation. It suggested the need to establish a balanced regulatory system while preparing support policies for domestic platform companies and enacting a "Promotion Act" or "Basic Act" containing long-term vision and strategy.

Lee Gi-dae, Center Director of Startup Alliance, said, "Now is not the time to discuss regulations, but a time that requires deep consideration on how to develop and nurture the AI industry."