The Korea Times

Controversy arises over FTC's regulation on platform operators

Korea Fair Trade Commission Chairperson Joh Sung-wook speaks during a press briefing at the government complex building in Sejong City, on Dec. 28, 2020. / Korea Times fileBy Kim Jae-heunA new bill proposed by the Korea Fair Trade Commission's (KFTC) to regulate platform operators such as Google, Naver and Coupang has triggered controversy, with the Korea Communication Commission (KCC) saying the regulation is redundant, and the companies claiming it is excessive. The so-called “Online Platform Fairness Act” targets up to 30 domestic and international firms here whose income generated by commission fees exceeds 10 billion won ($9.05 million). The antitrust watchdog's punitive measure aims to curb unfair business activity by online platform operators against contractors or consumers. If the bill is passed, the new law will require platform operators to draw up contracts on a physical document with its business partners. They will also be prevented from forcing contractors ― usually small merchants ― to provide economic benefits to them, or passing on responsibilities when

Jan 29, 2021By Kim Jae-heun

Controversy arises over FTC's regulation on platform operators

Companies

AmorePacific aims for rebound through collaboration with Off-White

Protection Box produced by AmorePacific in collaboration with Off-White / Courtesy of AmorePacificBy Kim Jae-heunAmorePacific, Korea's largest cosmetics company, hopes to overcome its current slump by launching a new product in collaboration with Italian luxury brand Off-White.The item, called “Protection Box,” is made up of limited-edition beauty products and fashion accessories. AmorePacific is making the mask packs and lip balms that go into the box, while Off-White is producing face masks as well as the container. The container can be used as a bag with a strap, which was designed by Off-White with an emphasis on “protection” during the coronavirus pandemic.This is the first time Off-White has collaborated with a Korean firm to introduce a cosmetic product. A Korean employee at the Italian fashion company's headquarters in Milan came up with the idea to test the product's potential in the Chinese market. Off-White's popularity as a luxury street brand has been growing explosively in Asian markets including China, Korea and Japan. Off-White's aim coincided

Jan 27, 2021By Kim Jae-heun

AmorePacific aims for rebound through collaboration with Off-White

Companies

Pulmuone to expand food business in Vietnam

Pulmuone's kimchi is sold at a supermarket in the United States in this 2019 file photo. / Courtesy of PulmuoneBy Kim Jae-heunSince its entry into the Vietnamese market in December 2019, local food firm Pulmuone has established a foreign branch office in Hanoi and been expanding its business through local retailers. In the third quarter of 2020, its sales had reached 51.61 million won ($46,850), quadruple the figure for the previous quarter, but still fairly low.Pulmuone Vietnam spent 200 million won to open its business, however, considering how fast revenue is growing there, the food firm has high expectations for the new market. Its sales from the Vietnamese market do not contribute much to its overall overseas figures, but the food firm believes it can better connect to neighboring Southeast Asian markets once it establishes itself there.“Our Vietnamese branch is busy securing local distribution networks and forming a marketing team. We will build production lines there and Vietnam will become a bridgehead for us to enter other Southeast Asian countries,” a Pulmuone o

Jan 25, 2021By Kim Jae-heun

Pulmuone to expand food business in Vietnam

Companies

CJ-Keistone Partners deal talks collapse

CJ CGV's movie theater in Yongsan, Seoul,  is empty Jan. 14, as the COVID-19 pandemic continues to spread. / Korea times photo by Bae Woo-hanBy Kim Jae-heunThe country's largest multiplex cinema chain CJ CGV is looking for new investors to take over its theater business after its sale talks with private equity fund (PEF) Keistone Partners were suspended.Keistone Partners originally planned to utilize its blind fund and form an additional project fund to acquire CJ Group's multiplex cinema unit. The deal was expected to be closed at the end of the month. However, investors delayed their decision on the acquisition of CJ CGV, which led to the talks facing an uncertain future. They were worried that the theater business here has been in a recession for too long and that various content providing platforms including over-the-top services have become more viable, which halved CJ CGV's business attractiveness. The multiplex chain, which has to pay rent and loans to defend its credit rating, is therefore searching for other investors. A number of medium-sized PEFs are said to have revi

Jan 25, 2021By Kim Jae-heun

CJ-Keistone Partners deal talks collapse

Companies

Outback raises prices again to prepare for sale

Outback Steakhouse corporate logo / Korea Times fileBy Kim Jae-heunU.S. Australian-themed casual dining restaurant chain Outback Steakhouse has raised its prices again, in an attempt to maximize its profitability and put the company up for sale. This is drawing criticism from the public as the restaurant chain failed to notify customers in advance.“It looks like Outback is trying to increase its company value by raising prices before selling off the brand. Its successful strategy to focus on deliveries of steak and pasta dishes has raised its value in the market,” an industry source said, Sunday. Outback Steakhouse changed its menu last October and increased the prices for 22 items by 6.3 percent on average. The price hike came two years after the last one, but the company did not disclose the updates on its official website. Most popular dishes, such as T-bone steak, L-bone steak and Toowoomba steak pasta became pricier as a result. Outback also increased the price for its lunch set menu and its delivery fee.“Many people are placing lunch orders at home or work bec

Jan 24, 2021By Kim Jae-heun

Outback raises prices again to prepare for sale

Tech & Science

Naver founder to target Google, Alibaba and Amazon

Naver founder Lee Hae-jin speaks at the company's data center “Gak” in Chuncheon, Gangwon Province, in July last year. / Courtesy of NaverBy Kim Jae-heunNaver founder Lee Hae-jin has been appointed as chairman of A Holdings, a joint venture established between Korean company Naver and Japanese conglomerate SoftBank to compete with American and Chinese rivals including Google, Alibaba and Amazon. Line is the most-used mobile messenger application in Japan and is operated by Line Corporation. Yahoo Japan is the biggest portal website in the country and is owned by SoftBank. After the merger, A Holdings is expected to have 130 million monthly average users in Japan.The two companies each invested 50 percent to split ownership of the joint venture's shares equally. Lee has made his vision for A Holdings clear with a focus on an artificial intelligence (AI) and online business. Last November, Line and Yahoo Japan announced that they would become a global leader in AI technology when they join forces. Naver CEO Han Seong-sook said during a conference call last month that she ca

Jan 21, 2021By Kim Jae-heun

Naver founder to target Google, Alibaba and Amazon

Companies

Uniqlo to make breakthrough with Jil Sander

People walk pass by a notice on the wall of a Uniqlo store in Gangnam, southern Seoul, explaining that the store will close on Aug. 31, 2020. / YonhapBy Kim Jae-heunJapanese casual wear brand Uniqlo made its breakthrough here with a collaboration with Jil Sander, last year.The “+J Collection” revealed in last fall came 11 years after the retailer first collaborated with the German fashion designer in 2009. The first +J Collection created a sensation all over the world including Korea, where its biggest store in the country in Myeong-dong, Seoul, alone gathered 600 people before the opening. In a matter of days the entire line sold out in Korea.The casual wear brand sought this chance to rebound its sales after facing its worst record due to the boycott campaign on Japanese products two years ago.In July 2019, Japan decided to put restrictions on certain exports to Korea after the Supreme Court ruled in favor of surviving South Korean victims of wartime forced labor who filed against Japanese firms. This led many people to reject Japanese products and brewery companies, an

Jan 21, 2021By Kim Jae-heun

Uniqlo to make breakthrough with Jil Sander

Companies

Gov't hit for ambiguous countermeasures on retailers

Starbucks Korea's store in Seoul was closed to visitors and only allows take-out orders under the government's new regulations amid a resurgence of COVID-19 infections nationwide. / Korea Times photo by Bae Woo-hanBy Kim Jae-heunThe government's recent anti-COVID-19 countermeasures imposed on local retailers are being criticized for their ambiguity. According to the quarantine authorities, all restaurants in the capital area must close for walk-in customers at 9 p.m. from Aug. 30 to Sept. 6 and they can only make food for takeout or delivery until 5 a.m.In the case of coffee shops, franchise brands cannot allow customers in the store and they can only serve take-out or delivery orders. However, privately owned cafes can seat customers inside. This is unfair for coffeehouse chains such as Starbucks Korea, which make most of their sales from customers visiting the shops. Starbucks Korea currently operates 1,460 shops across the country with 900 of them located in Seoul, Gyeonggi Province and Incheon. It gets 40 percent to 50 percent of its revenue from takeout services and does not off

Jan 21, 2021By Kim Jae-heun

Gov't hit for ambiguous countermeasures on retailers

Tech & Science

Collaborations between media, IT firms growing popular

Naver and CJ Group logo / Korea time file By Kim Jae-heunSeveral domestic content providers and platform operators are working together to create synergy to strengthen their competitiveness in the local market amid the prolonging COVID-19 pandemic. The coronavirus outbreak has forced many people to stay home under social distancing measures imposed to prevent the spread of the virus.This has been problematic for movie theaters and travel agencies; but has brought about a heyday for platform and media businesses.Internet firm Naver is one of the biggest beneficiaries of the current environment. Thanks to its search engine that handles nearly 75 percent of all web searches in Korea, it easily attracted platform users to shop on its online market. To cope with continuously increasing demand for order delivery services, Naver signed a memorandum of understanding (MOU) with CJ Logistics, the country's largest such company operated by CJ Group.Naver and CJ Group agreed to

Jan 21, 2021By Kim Jae-heun

Collaborations between media, IT firms growing popular

Companies

Can Chung's personal social media marketing succeed?

Vice Chairman of Shinsegae Group Chung Yong-jin prepares food in the video posted on E-Mart's official YouTube channel on Dec. 23, 2020. / Screen captured from E-Mart's YouTube channel By Kim Jae-heunVice Chairman of Shinsegae Group Chung Yong-jin has recently been enjoying popularity on Instagram where he shares posts on his personal life and company products. Chung recently uploaded a video hinting at his debut as a YouTuber. The caption below read “YJ Log (Yong Jin's vlog) will be revealed this week.”In the preview video, Chung is wearing an apron and cooking in the kitchen with assistants. There is also a front view of an E-Mart building in Seongsu, eastern Seoul, in the scene, which suggests that this is not just him going about his hobby but rather a collaboration with E-Mart to introduce his company's products.E-mart, which is a subsidiary of Shinsegae Group, currently operates the private label “Peacock” that makes home meal replacements.Chung's influence on

Jan 21, 2021By Kim Jae-heun

Kim Jae-heun

Read more

Controversy arises over FTC's regulation on platform operators

AmorePacific aims for rebound through collaboration with Off-White

Pulmuone to expand food business in Vietnam

CJ-Keistone Partners deal talks collapse

Outback raises prices again to prepare for sale

Naver founder to target Google, Alibaba and Amazon

Uniqlo to make breakthrough with Jil Sander

Gov't hit for ambiguous countermeasures on retailers

Collaborations between media, IT firms growing popular

Can Chung's personal social media marketing succeed?

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