Delivery platform competition impact to be closely examined

Airline merger compliance under continued watch

Fair Trade Commission Chairman Ju Byung-ki said Wednesday he would review the need to establish standard terms and conditions for the lodging industry.

Ju made the remarks at a national audit of the National Assembly's Political Affairs Committee, responding to Democratic Party of Korea lawmaker Han Min-su, who noted that consumer disputes over accommodation booking cancellations and refunds have been mounting despite the absence of relevant standard contract terms.

Fair Trade Commission Chairman Ju Byung-ki answers questions from lawmakers at a comprehensive audit of the Political Affairs Committee at the National Assembly on Wednesday. [Yonhap]
Fair Trade Commission Chairman Ju Byung-ki answers questions from lawmakers at a comprehensive audit of the Political Affairs Committee at the National Assembly on Wednesday. [Yonhap]

Ju said the findings of an ongoing survey into the lodging industry would also be factored into any review of regulatory improvements. "We are already conducting a survey on lodging," he said. "It will be completed soon, and we will take that into account when reviewing whether to establish standard terms."

On the preliminary merger review of Uber Technologies' acquisition of Germany's Delivery Hero, the parent company of Baemin operator Woowa Brothers, Ju said the commission would "rigorously examine and scrutinize the impact on small business owners, the impact on delivery riders, and the impact on the competitive order." Delivery Hero is the largest shareholder of Woowa Brothers, which operates Baemin.

Asked about concerns that the merger of Korean Air and Asiana Airlines could push up airfares and harm consumer welfare, Ju said the FTC would "keep that firmly in mind and continue to thoroughly monitor compliance on each route where oversight obligations remain."

The FTC conditionally approved the two carriers' merger in December 2024, imposing corrective measures on 26 international routes and eight domestic routes deemed most likely to restrict competition. The conditions included a requirement that annual seat supply on those routes not fall below 90 percent of 2019 levels.

The audit also drew questions about a proposal to apply a mandatory 50 percent ownership threshold when subsidiaries or sub-subsidiaries under a holding company structure pursue new dual listings. The existing rules had set the threshold at 30 percent for listed companies and 50 percent for unlisted ones.

People Power Party lawmaker Song Eon-seog questioned whether the proposal would place excessive restrictions on corporate activity. Ju said the 30 percent threshold for listed companies had always been a special exception — unlisted companies already face the 50 percent requirement — and that such preferential treatment for listed firms was no longer appropriate.

"Under a holding company structure, substantial control can be exercised even with a small ownership stake," Ju added. "Granting listed companies this kind of exception is not suitable for the advanced capitalist economy we have today."


y2k@heraldcorp.com