Growing Demand for Legislative Action Amidst Online Platform Crisis in Korea
Creatrip Team
a year ago
In Korea, the repeated failure of online luxury platforms like 'Balan' to settle payments to vendors has sparked calls for legislative action. The collapse of 'Balan', following a similar crisis with platforms TMon and Wemakeprice, highlights gaps in the current large-scale distribution law. This law regulates payment timelines for major retailers but excludes intermediary platforms, allowing them to misuse vendor payments. Despite a legislative amendment proposal by the Korea Fair Trade Commission to mandate timely payments, political turmoil and impeachment-related gridlock have stalled progress. Meanwhile, vendors and businesses continue to suffer financial struggles as solutions are delayed.
