More than half of South Korean startups are concerned that the Platform Competition Promotion Act (PCPA), pushed forward by the Fair Trade Commission, could adversely affect the startup ecosystem. (Image courtesy of Pixabay)
SEOUL, Jan. 31 (Korea Bizwire) – A recent survey has revealed that more than half of South Korean startups are concerned that the Platform Competition Promotion Act (PCPA), pushed forward by the Fair Trade Commission, could adversely affect the startup ecosystem.
Startup Alliance, a non-profit organization, surveyed 106 founders and co-founders of domestic startups from January 22 to 27, finding that 52.8% of respondents believe the act will negatively impact the startup ecosystem.
Among platform startups, 54.4% expressed a negative outlook towards the legislation.
Only 14.1% of respondents felt the law would positively influence the startup landscape.
This indicates a significant gap between the Fair Trade Commission’s expectation that the law will protect smaller platforms and startups from dominant market players and the industry’s actual perception.
When asked about the specific effects of the law on the startup ecosystem, 50.9% of respondents feared it might stifle the growth momentum of startups not yet profitable due to their size or user base.
Others worried that the law could increase the domestic influence of global platforms like Google and Netflix (45.3%), create uncertainty about which startups might fall under regulation due to broad criteria (39.6%), and make it harder for startups to exit or receive investments through platform companies (32.1%).
Startup Alliance plans to host a forum on “Platform Regulation Legislation and the Future of the Digital Economy” with the Digital Economy Forum on January 31 at 10 a.m. at Startup Alliance &Space, to further discuss these concerns.
M. H. Lee (mhlee@koreabizwire.com)
