Korea Federation of Microenterprise Welcomes Platform Co-Prosperity Bill... "A Starting Point for Co-Growth"

"Safeguards Against Excessive Commissions and Settlement Delays"

The Korea Federation of Microenterprise has welcomed the introduction of a bill aimed at strengthening co-prosperity between online platforms and small business owners operating on them, calling on the National Assembly to expedite its passage.

On August 6, the Korea Federation of Microenterprise released an official statement on the ‘Partial Amendment to the Act on the Promotion of Cooperation between Large Enterprises and Small and Medium Enterprises,’ recently sponsored by Assemblyman Song Jaebong of the Democratic Party of Korea. The statement noted, “It is significant that the bill establishes an institutional foundation that will allow platform operators and small businesses on these platforms to overcome the current imbalances and cooperate as equals,” and expressed support for the proposal.

The Federation continued, “Large numbers of small businesses and SMEs have long had their livelihoods threatened by unfair transaction practices, such as excessive commissions by online platforms, unilateral settlement delays, and data monopolization.” The statement further pointed out, “It is true that there has been a lack of legal safeguards to regulate such practices and to protect businesses operating on these platforms.”

The organization especially gave positive feedback on several aspects of the amendment: ▲the public disclosure of surveys conducted by the Ministry of SMEs and Startups and the granting of authority to request action from the Fair Trade Commission; ▲the introduction of a co-prosperity cooperation index and the institutionalization of a body for conflict resolution; ▲the stipulation of efforts for prompt settlement payments to address delays, along with information sharing; and ▲the creation of a legal basis for government support to strengthen digital capabilities of businesses and reduce their administrative burdens.

The Federation stated, “The sustainable growth of online platforms is directly linked to the survival of the small businesses and SMEs operating on them,” adding, “We hope that this amendment will become the starting point for co-growth where all members of the platform ecosystem can prosper together.” The Federation also called for the active cooperation of the National Assembly, and pledged, “We will continue to represent the voices on the ground and strive to create a truly cooperative environment that establishes fair and reasonable business practices within the platform ecosystem.”

This content was produced with the assistance of AI translation services.