Republic of Korea: Federal Trade Commission initiated a consent resolution procedure in investigation into Kakao for alleged breach of Large-Scale Retail Business Act

On 20 January 2025, the Fair Trade Commission (FTC) initiated a consent resolution procedure for Kakao, which has been accused of violating the Large-Scale Retail Business Act by forcing suppliers on its "Kakao Gift" platform to use a free delivery method that included shipping costs in the product price, thereby increasing supplier fees. Kakao proposed self-corrective measures, including expanding delivery options to allow suppliers to choose between free and paid delivery, reducing various fees, providing marketing support, and implementing fair trade education and compliance programs. The FTC's decision aims to implement these proposals to benefit suppliers and improve market practices without increasing consumer burden. The FTC noted that this is the first application of the consent resolution procedure in the online shopping market since its introduction in July 2022, aiming to enhance supplier rights and market transparency.