Republic of Korea: Issued ruling in FTC investigation into Airbnb for violations of the Electronic Commerce Act

On 11 March 2024, the Korean Fair Trade Commission (FTC) issued a ruling in its investigation into Airbnb for violations of the Electronic Commerce Act. In particular, Airbnb Ireland, a global shared lodging platform, has been sanctioned by the FTC for failing to display its identity information and neglecting mail-order brokers' obligation to confirm and provide clients' identity information in the lodging service market. The FTC found these actions to be a violation of Article 10, Paragraph 1 of the Electronic Commerce Act, resulting in a fine imposed on services facilitating cyber mall construction and server management for business e-commerce activities. While the violation initially warrants a fine of KRW 1 million won per regulations, Airbnb's self-correction resulted in a 50% reduction of the fine.