Promising Signs from Nominee

(Source: The Korea Times)

Korea’s platform regulation debate has stalled. For my network, it's nothing new at all. Still, it is welcome to have an official statement from the top nominee. Recently, Biung-Ghi Ju, the nominee for Korea Fair Trade Commission (KFTC) Chair, stated that, if confirmed, he would not "proceed with the so-called Online Platform Act".

Although he attributed this stance to pressure from the Trump administration, I nonetheless appreciate his additional remarks.

He, reportedly, said: "All problems cannot be resolved through legislation alone." "Under the current legal system, the FTC will make the most of its executive authority to block any high-handed business practices by platform operators." (Quoted from The Korea Times)

As an economist, he also placed strong emphasis on enhancing economic analysis capabilities—a goal I find commendable. He said: "[the KFTC] [needs] to create a system that maximizes transparency and rational decision-making and also strengthen the capacities for economic analysis and data production and analysis." (Quoted from Chosun Biz)

That said, this does not suggest that he is a 'hands-off' libertarian. Time will tell, but for now, his previous research appears to show a serious concern for fairness and distributive justice. His remarks below also give reason to expect that the KFTC’s enforcement will remain strong and be better supported by sound economic analysis and reasoning.

He stated: “No one will be willing to exude any entrepreneurial spirit under conditions where strong businesses abuse their power and block innovation and achievement by smaller ones”. “We need to pave the way for economically vulnerable groups, such as startups and the self-employed, to set foot on the path to becoming strong players themselves.” (Quoted from The Korea Times)

Unlike the previous, this time it seems a well-qualified nominee has been put forward.

That said, I have one final personal point: concerns about the abuse of power by strong market players, as he himself has stressed, should equally apply to the government, the monopoly provider of public services. Just as we must remain mindful of the inefficiencies of informal institutions created by powerful businesses, we must also be vigilant about the inefficiencies of formal institutions run by the government.

I hope such awareness will be reflected in the competition authority’s activities under his leadership.

(링크드인 원문 링크: https://www.linkedin.com/posts/sangyunl_koreas-platform-regulation-debate-has-stalled-activity-7361959246147588096-a7w4)