KFME: "22 Platform Regulation Bills Pending in National Assembly... Will Take Independent Action"

KFME Urges Swift Enactment of Online Platform Fairness Act
Calls for Stronger Regulation of Large Corporations' Abuse of Power
Small Business Owners Share Burdens of High Platform Fees
KFME to Establish Online Platform Small Business Grievance Center
Industry Associations Demand Measures Against Platform Monopolization

The Korea Federation of Micro Enterprises (KFME) has called for the enactment of the "Online Platform Fairness Act" to regulate the unchecked abuse of power by large corporations. The organization also announced plans to take its own measures, such as establishing an "Online Platform Small Business Grievance Center."

On May 28, at a press conference held at the KFME building in Yeongdeungpo-gu, Seoul, KFME Chairman Song Chiyoung stated, "Since 2020, the KFME has been urging the enactment of the Online Platform Fairness Act, but even after five years, there has been no progress. Currently, there are 22 platform regulation bills pending in the 22nd National Assembly. As soon as the presidential election is over, the next administration must enact these bills to regulate the unchecked abuse of power by large online platform corporations."

He added, "We need to enhance fairness in online transactions by making it mandatory to draft and provide contracts to partner companies, prohibiting the abuse of superior bargaining positions under the Fair Trade Act, and requiring advance notice to partner companies for any contract changes. We must also prevent unfair price-setting practices, collusion, and abuse of monopoly positions."

In addition to Chairman Song, the event was attended by Jang Yujin, Vice Chair of the KFME's Distribution and Platform Committee, as well as small business owners from sectors such as lodging, food service, and supermarkets, who shared the realities faced by small businesses.

Park Uishin, who operates a pork belly delivery restaurant in Guwol-dong, Namdong-gu, Incheon, said, "When you add the 7.8% delivery commission, 10% VAT, 3.3% payment gateway fee, and customer discount coupon costs, delivery app-related expenses account for 33% of total sales. In July last year, we held a win-win council with Baemin and Coupang Eats, but because we had to lower the minimum order amount during the promotion period to accommodate single-person deliveries, I have not felt any improvement in sales or order volume since the council."

Jang Yujin, President of the Korea Chauffeur Association, said, "Due to the lack of clear regulations for platforms, the current regulations designating suitable industries for small and medium-sized enterprises are hardly applied to platform businesses. While business adjustment measures are binding, the likelihood of adjustment is so low that they are not a practical solution." He went on to stress, "We strongly urge the immediate establishment of effective legal and institutional measures to resolve unfair competition in the platform market and to guarantee the survival rights of small businesses."

The organization also revealed plans to respond at the private sector level, such as by setting up a grievance center. Chairman Song stated, "Given the current lack of relevant laws, we will establish an Online Platform Small Business Grievance Center within the KFME to accept grievances from small business owners. Based on this, we will actively respond at the private sector level by announcing the results of investigations into unfair practices on online platforms and forming a voluntary dispute mediation council to help create a healthy online ecosystem."

In addition, organizations such as the Korea Hotel Association and the Korea Supermarket Cooperative Federation also called for measures to prevent monopolization in online platform distribution.