Korea has recently been facing a multitude of issues by both consumers and businesses, in light of the increasing online purchases from overseas sellers by Korean consumers, as well as the reliance on foreign platforms. Specifically, there has been an increase in the number of complaints and disputes raised by Korean consumers, and Korean platform operators are voicing complaints that Korean businesses are facing reverse discrimination against foreign companies.
In light of such issues, various related agencies within the Korean government made a joint announcement on March 13, 2024 of their Plans for Consumer Protection Relating to Foreign Online Platforms (the “Plan”), to ensure compliance with Korean laws by foreign businesses, as well as duly prevent and remedy any harm to Korean consumers.
We provide below a summary of the plan as well as an estimated timeline as announced.
I. SUMMARY OF THE PLAN AND ESTIMATED TIMELINE
II. TAKEAWAYS
As part of the foregoing plan, the KFTC already began on-site investigations in March 2024 against foreign platform operators for potential violation of the E-Commerce Act. We expect that the other Korean government agencies listed above will also actively carry out their plans in accordance with the timeline. Accordingly, any related businesses are advised to carefully follow the progress of the plans by such various agencies, internally check whether there are any potential risks, and take any remedial measures as needed.
In addition, it’s worthy to note that the government also announced the plans to form a Unified Plan Task Force for Foreign Direct Purchases, to continually check the status of the Plan and make any revisions or adjustments as needed. Therefore, online platform operators are especially advised to monitor any customer complaints and ensure compliance with any applicable laws.
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