KCC chairman insists digital act won't cause 'double regulations' for Korean firms

The Korea Communications Commission (KCC) Chairman Kim Hong-il speaks to the press on Monday at a luncheon meeting held at Gwacheon governmental complex in Gyeonggi. [KCC]

The Korea Communications Commission (KCC) Chairman Kim Hong-il said on Monday that the so-called “Platform Competition Promotion Act,” a bill being drafted to regulate digital platforms, is necessary and promised to map out the rules so that “local companies are not subject to dual regulations.”

The Platform Competition Promotion Act is being drafted by the Fair Trade Commission (FTC) and other governmental regulators to curb anti-competitive practices in the digital economy, similar to the European Union’s Digital Markets Act. Domestic and global tech companies such as Naver, Kakao, Google and Apple are likely to apply to this new bill.

“Big tech companies have abused their position as dominant platform operators, conducting unfair malpractices on small- and medium-sized companies or disadvantaged users on services and fees,” Kim said at a luncheon meeting with the press held at Gwacheon governmental complex in Gyeonggi. It was his first meeting with the press since he was appointed to head the KCC on Dec. 29.

“I believe that there is a need for government intervention at a broader level to address such concerns, but we also understand the viewpoints of experts and various media outlets who argue that the bill may subject such companies to double regulation and may hinder the growth of startups or contribute to various challenges, including trade frictions between Korea and the United States. So FTC and related departments are discussing at length to minimize such risks.”

Kim also believes in the abolishment of the Mobile Device Distribution Improvement Act, but refrained from giving details into the process.

The law intended to prevent mobile carriers from giving out excessive rebates and discounts on phone prices to lure more subscriptions.

However, the law received criticism that it eliminated options for consumers to enable them to buy smartphones at cheaper prices amid rising telecommunication costs.

The government decided to abolish the law last month.

However, Kim said that there are still details that need to be hashed out with the lawmakers.

“The law should be revoked, but there are still causes that should be preserved,” Kim said. “But if we cannot come to an agreement with the National Assembly regarding the matter, then [the other option left] is to revise the current law — we’re juggling options here, but can’t say anything definitive for now.”

The KCC is also “reviewing in detail” the privatization of the local news channel YTN, with Kim commenting that “over two months have passed since the commission deferred the decision regarding the matter.”

Eugene Group, a mid-sized conglomerate focused on construction and finance, successfully bid to acquire the dominant stake of 30.95 percent in local news broadcaster YTN last October. To complete the process, the company needs acquisition approval from the KCC, which evaluates the potential stakeholder’s capabilities on its initiative toward public interest, and social and finance abilities.

The initial review deadline given to the committee is 60 days in accordance with the Broadcasting Act, but the KCC has postponed the decision.

“More than two months have passed since the KCC last deferred the decision on Nov. 29,” Kim said. “We have asked for additional data [from the Eugene Group] and have been appraising the matter, but I do not believe that it is proper to leave the decision hanging in the air for too long, for both the potential stakeholder and viewers of the news channel. We are carefully reviewing the matter.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]