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S Korea says platform law applies equally despite US-China concerns
South Korea’s Fair Trade Commission chairman Ju Biung-ghi said the country’s proposed online platform law will apply equally to both domestic and foreign tech companies, including those from the US.
He clarified that the regulation aims to address unfair transactions with online platform operators, and is not intended to target specific companies or restrict market dominance.
Ju’s comments follow concerns from US officials and business leaders that the law could benefit Chinese companies by limiting the expansion of American tech firms.
Ju also said the Lee Jae Myung administration plans to strengthen economic sanctions against unfair business practices rather than pursue criminal charges.
The Korea-US Joint Fact Sheet, signed in November 2025, included Korea’s commitment to avoid discrimination against US companies and unnecessary barriers in laws and policies on digital services, network usage fees, and online platform regulations.
🔗 Source: The Korea Times
🧠 Food for thought
Implications, context, and why it matters.
South Korea’s platform rules move from criminal to economic enforcement, with clearer compliance targets
- Lee Jae Myung’s team plans to use fines over jail time, with penalties up to 10% of relevant sales under broad “unfairness” standards 1.
- Coupang was fined KRW 162.8 billion for search ranking manipulation and related deception 2, while Kakao Mobility (Kakao’s ride hailing unit) faces criminal proceedings after Korea Fair Trade Commission (KFTC) referrals 2.
- Draft rules would require platforms that manage payments to settle within 20 days 3 and segregate 50% of sales proceeds 3, mirroring payment processor obligations 1.
- Thresholds are KRW 10 billion in domestic revenue or KRW 100 billion in intermediated transactions (deals facilitated between buyers and sellers) 3, with a phase-in starting at 40 days 3.
RegTech (regulatory technology) vendors can help Korean platforms with local rules and US scrutiny
- Platforms face Korean oversight along with US diplomatic pressure 4. Six US House Judiciary Committee members sent the KFTC a formal request for briefings on selection and economic impact by August 7, 2025 4.
- Tools that track settlement timing 3 and support contract transparency systems 3 can help. Ranking algorithm logs fit KFTC priorities on algorithmic manipulation 2 and payment delays 3.
- From May 2022 to November 2024, the KFTC issued KRW 1.1557 trillion in fines across 5,837 cases 2, which sustains demand for compliance systems.
- Firms above the thresholds 3 need workflows for the 30–50% segregation rule 3 while keeping operations flexible during transition.
