Republic of Korea: Issued report on the implementation and reevaluation of self-regulation measures

On 23 April 2024, the Korean Fair Trade Commission (FTC) published a report reviewing platforms such as Baedal Minjok, Yogiyo, Coupang Eats, Ddingyo and Wemepo. The document discusses the results of the implementation and reevaluation of the self-regulation measures introduced in March 2023 by the FTC. The regulation aims to address the interests present in the platform market, particularly between platform operators and small businesses. It focuses on enhancing transparency in transactions, contract practices, and dispute-resolution processes. Baedal Minjok (Woowa Brothers) extended its no commission fee policy for packaging order services, introduced a consumer review policy compliant with ISO 20488, and is phasing out free commission policies for new merchants while maintaining them for existing ones. Coupang Eats also continued its policy of no commission fees, expanded promotional activities for traditional market merchants, and plans to introduce a 4.9 per cent commission fee. Ddingyo (Shinhan Bank) and Wemepo maintained their low commission policies, with Ddingyo extending its financial support for franchise owners and Wemepo continuing to offer zero commission on packaging fees without planning new mutual growth strategies. The FTC has indicated that the implementation of the changes has been largely consistent, with ongoing commitments to uphold the new policies and a continuous evaluation process to adjust to evolving market conditions.