The Korean Fair Trade Commission (FTC) has begun investigating unfair trade practices at Korean social commerce businesses. (image: Pixabay)
SEOUL, June 22 (Korea Bizwire) – While the social commerce market has been growing rapidly in Korea, the Korean Fair Trade Commission (FTC) has begun investigating unfair trade practices at Korean social commerce businesses.
According to an industry expert, Coupang and Ticketmonster are being accused of violating the Large Scale Distribution Law, which triggered the FTC’s investigation. The two social commerce retailers are two of the top three biggest players in the social commerce market, along with We Make Price.
The FTC has already collected evidence of unfair trade practices, such as delayed payments and unissued invoices for delivered goods, through investigations at these social commerce businesses.
“Since June, the investigations into social commerce businesses and other online shopping malls have begun, and necessary actions will be taken if any violations are found,” said Jung Jae-chan, director of the FTC, at a distribution sector vendors’ meeting last month.
“Many social commerce businesses were found to be delaying payments to their vendors in the past, so the whole industry has revised contract terms to comply with the law,” said an industry official. “There shouldn’t be any violation occurring at the moment,” he added.
By M. H. Lee (mhlee@koreabizwire.com)
