A pilot program titled “Dispute Mediation Committee” once gained significant public attention as interest in dispute resolution grew. The show was featured on MBC’s popular variety program Infinite Challenge. (Photo source: MBC broadcast capture)
SEOUL, March 23 (Korea Bizwire) — South Korea recorded its highest-ever number of trade dispute mediation cases in 2024, driven largely by a surge in conflicts involving online platforms, according to data released on Sunday by the Korea Fair Trade Mediation Agency (KFTMA).
The agency reported receiving 4,041 mediation requests last year, marking a 16% increase from the previous year and the first time the figure surpassed 4,000.
Disputes in the fair trade sector rose 31% to 1,795 cases, with online platform-related cases increasing by a significant 45% to 333. Typical disputes involved platform operators unilaterally suspending seller accounts or deducting portions of settlement payments without prior agreement.
Contract-related disputes also jumped 35% to 457 cases, largely due to complaints over excessive penalties for early termination in online advertising and rental agreements.
Franchise-related disputes totaled 584 cases, frequently concerning high penalty charges for early contract cancellations.
The subcontracting sector, particularly construction, also saw an uptick, with 1,105 cases filed — 660 of those related to construction subcontracting. Analysts attributed this to the continued downturn in South Korea’s construction market.
The agency processed 3,840 cases in total last year, up 22% from 2023. Of these, 1,450 cases resulted in successful mediation, reflecting a 13% increase from the previous year. Direct financial relief provided through mediation totaled 121 billion won, with overall direct and indirect relief — including legal cost savings — reaching 122.8 billion won.
Additionally, the agency’s outreach program for those unable to visit in person, “On-Site Mediation Service,” handled 133 cases in 2024.
Looking ahead, the KFTMA expects further increases in disputes as digital commerce accelerates and the construction sector continues to struggle. “We anticipate more complex and varied forms of unfair trade practices and will proactively expand mediation services to support small businesses facing financial harm,” the agency said in a statement.
M. H. Lee (mhlee@koreabizwire.com)
