The first task of the newly established Vice Minister dedicated to small business in the Ministry of SMEs and Startups is expected to be the 'Online Platform Fairness Act' (Onple Act). Small business organizations are in the position that the introduction of the Onple Act is necessary to the point of demanding a meeting with President Lee Jae-myung.
Although the establishment of the Vice Minister has been evaluated as a foundation for implementing small business policies independently, it seems unlikely that the Onple Act will be enacted soon.
According to industry sources on the 8th, small business organizations plan to convey their opinions about the enactment of the Onple Act when the Vice Minister dedicated to small businesses takes office in the Ministry of SMEs and Startups. A representative of the Korea Federation of Micro Enterprise (KFME) noted, "We will emphasize the necessity of the Onple Act and, if legal mechanisms are difficult, we will highlight alternatives for voluntary private sector cooperation."
The Onple Act is a bill aimed at enhancing the transparency and fairness of online platforms. Its main contents include regulating the monopoly of large platforms (Monopoly Regulation Act) and protecting small business owners on platforms (Fairness Act). It was one of President Lee's 10 major election pledges but has been omitted from the current five-year national governance plan. Discussions in the National Assembly are also sluggish.
Small business organizations hold the view that regulation of platforms is necessary. They argue, "The space for offline distribution small businesses is rapidly disappearing, so regulation of online platform corporations is urgent, and the enactment of the Onple Act, which will serve as a certain standard, is essential."
When Han Seong-suk was nominated as Minister of the Ministry of SMEs and Startups, the Korea Small Business Association mentioned, "As a public official, you should clearly express your views on online platform regulations." Minister Han showed a cautious attitude during the National Assembly confirmation hearing, stating, "I will first listen to the demands of domestic small businesses and SMEs."
Small business organizations are hoping that the enactment of the Onple Act will be actively pursued with the establishment of the dedicated Vice Minister. They even demanded the establishment of a dedicated Vice Minister around the time of the presidential election in April this year.
A representative from the Association for Fair Platforms (Gong플협) mentioned, "When the Vice Minister dedicated to small businesses takes office, we will convey related opinions," adding, "We had expected the new government would start discussions on enactment during the July special session of the National Assembly, but there has been no progress."
However, it remains uncertain whether the government will actively move forward with the enactment of the Onple Act. The current Fair Trade Act prohibits practices such as preferential treatment for their own companies in the platform sector, tying sales, restricting consumers from using multiple competing platforms simultaneously, and requiring other business operators to provide their services under the best terms. If the Onple Act is enacted, it could lead to 'double penalties.'
In particular, the external environment is complex. U.S. President Donald Trump stated shortly after the Korea-U.S. summit, "Unless discriminatory measures are eliminated in all countries with digital taxes, laws, rules, or regulations, I will impose significant additional tariffs on exports to the United States from those countries as President of the United States."
If the Onple Act is enacted, American corporations like Google could also become subjects of sanctions, raising the possibility of trade conflicts between the U.S. and Korea.
Lee Jong-woo, a professor at Ajou University's Department of Business Administration, said, "As there are many global corporations in the platform space, if the Onple Act is enacted, it could lead to sanctions against foreign companies, which could become a matter between countries," adding, "This is the reason Europe and the U.S. have been unable to legislate similar bills."
"The government should create an organization to facilitate communication with small businesses and platforms," he continued, "Ultimately, when online and offline corporations compete, the benefits will go to consumers."