Competitiveness outweighs certification

The government has withdrawn its plan to mandate the Korea Certification (KC) for certain popular items purchased directly from overseas due to safety concerns. It canceled the plan in just three days in the face of a strong public backlash over the efficacy of the move and possible infringement on consumers’ rights. The half-baked policy aimed at protecting Korean consumers from the onslaught of Chinese e-commerce platforms only exposed the government’s backward policymaking in the age of borderless consumption.

The government last week announced a list of 80 items, including children’s goods and electronic gadgets, which will require a KC mark to become available to Korean consumers through foreign e-commerce platforms. The government took the action to deal with increasing complaints from consumers about hazardous merchandise they purchased from Chinese platforms.

But the policy drew a strong backlash, as Koreans would have to pay much heavier prices for the same product. Agents also could exploit the KC authorization mark for profiteering. However, it is nearly impossible for consumers to check the authenticity of the certification mark for thousands of online purchases.

After the outbursts of complaints, the government hurriedly held a briefing and explained that it didn’t mean to ban online purchases of such foreign items, only to restrict purchase of hazardous items. President Yoon Suk Yeol personally apologized for the situation, and ordered his aides to find a solution.

The government has a responsibility for addressing safety issues with online purchases amid the popularity of Chinese e-commerce platforms. But resorting to the certification mark was a makeshift action. “Such a shortsighted approach cannot protect the industry from the sales offensive of Chinese players,” said former lawmaker Yoon Hee-suk.

Online direct purchases by Koreans reached a whopping 1.65 trillion won ($1.2 billion) in the first quarter alone. Such a trend cannot be controlled. Instead, the government must come up with a fundamental and comprehensive road map to enhance the competitiveness of Korean retailers and their products.

The government must first lift various types of restrictions on deliveries and business hours of big Korean marts to enhance their competitiveness against Chinese rivals who are free from Korea’s local regulations. The government must present effective measures to protect our distributors and small manufacturers who stand helplessly against the strong offensive from China’s online players who can freely sell their cheap products here. Safety examinations on Chinese products should also be strengthened. All these require a thorough review to survive all the challenges from the retail revolution.