Executive Summary
- Small businesses struggle to coexist with ‘South Korea’s Amazon’
Strategic Deep-Dive
Crossroads of Regulation and Coexistence: Towards a Sustainable Model
Growing concerns regarding the detrimental effects of platform monopolies are intensifying regulatory oversight by authorities, including the Korea Fair Trade Commission. The “winner-takes-all” nature inherent in the platform economy has led to an already significant imbalance, making reliance solely on market self-regulation inadequate. However, compelling counterarguments suggest that hasty regulations could weaken Korea’s logistics competitiveness.
Consequently, sophisticated legislative support, such as the “Act on the Fairness of Online Platforms,” is necessary to enhance the bargaining power of small business owners without hindering innovation. Furthermore, platforms themselves need to demonstrate a proactive shift in attitude towards their responsibility in maintaining the ecosystem, including data sharing and the creation of shared growth funds.
