Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Immediate push for online platform law unlikely, FTC chairman nominee says
Fair Trade Commission Chairman nominee Ju Biung-ghi speaks during a National Assembly confirmation hearing in Seoul, Friday. Yonhap
By Lee Min-hyung
The Fair Trade Commission (KFTC) cannot immediately regulate market-dominant global platform firms through new legislation, as the issue is closely linked to Korea’s ongoing trade negotiation with the United States, the watchdog’s nominee for chairman said Friday.
“As the trade negotiations are too important to ignore, we cannot boldly push ahead with the so-called Online Platform Act,” Ju Biung-ghi told lawmakers during a confirmation hearing at the National Assembly in Seoul.
“U.S. Federal Trade Commission Chair Andrew Ferguson made it clear that Korea should not regulate U.S. platform firms in advance (through the act) during his visit to Korea on Thursday,” he said.
The nominee added, “Korea’s trade uncertainties are way too huge under the Donald Trump administration.”
The Online Platform Act is aimed at regulating monopolistic tech firms so they do not harm the interest of customers here. The government and the watchdog have in recent years called for the need to introduce a law to prevent platform firms from exuding excessive influence and engaging in unfair business activities.
The enactment of the law was one of President Lee Jae Myung’s major campaign pledges, but the country’s unresolved trade negotiations with the U.S. have made it harder for Korea to pass the law as scheduled.
The U.S. takes issue with the proposed law, as it could target U.S. firms such as Google, Apple or Meta.
“The U.S. government is making unprecedentedly strong trade demands,” Ju said. “Regarding the online platform law, the country also maintains a hardline stance to not just Korea, but also Europe and Japan.”
Earlier, Korea and the U.S. reached a trade agreement to cut the latter’s blanket tariff on imports of Korean products from 25 percent to 15 percent, but Korea is still treading carefully with the U.S. on fears of potential trade retaliation in other areas.
Despite the toned-down rhetoric on the push for the law, the KFTC nominee raised the necessity for Korea to forge ties with other countries to regulate market-dominant tech firms.
“They will keep abusing their monopolistic position and exploit other market participants, so it is necessary for us to build a global partnership with the OECD or other international organizations (to regulate such firms),” he said.