Fair Trade Commission Chair Joo Byung-ki: "Reviewing Necessity of Standard Terms for Accommodation Industry, Fact-Finding Survey Nearing Completion"

▲ Fair Trade Commission Chair Joo Byung-ki answers lawmakers' questions during a comprehensive audit on non-financial sectors held by the National Assembly's Political Affairs Committee on the 21st.

Fair Trade Commission Chair Joo Byung-ki stated that he will "review the necessity of establishing standard terms and conditions for the accommodation industry."

Chair Joo made the remark during a National Assembly audit by the Political Affairs Committee on the 21st, in response to a point raised by Representative Han Min-soo of the Democratic Party of Korea that despite a high volume of refund and cancellation disputes related to the accommodation industry, no separate standard terms have been prepared.

Chair Joo said, "(A fact-finding survey on accommodations) is currently underway," adding, "It will be completed soon, and we will review (whether to establish standard terms) taking that into account."

Regarding the pre-merger review being pursued by the FTC for Uber Technologies' acquisition of Germany's Delivery Hero (DH), he stated, "We will thoroughly examine and review the impact on small business owners, riders, and the competitive order."

Delivery Hero is the largest shareholder of Woowa Brothers, the operator of Baemin (Baedal Minjok).

In response to concerns that the merger between Korean Air and Asiana Airlines could drive up airfares and infringe upon consumer benefits, he replied, "We will keep that in mind and continue to strictly monitor each route where implementation oversight remains."

Instead of approving the business combination of Korean Air and Asiana Airlines in December 2024, the FTC imposed measures such as prohibiting the reduction of annual supplied seats below 90% of 2019 levels on 26 international routes and 8 domestic routes with high concerns over restricted competition.

Addressing a question from Representative Song Eon-seog of the People Power Party asking whether changing the mandatory shareholding ratio for subsidiaries and sub-subsidiaries within a holding company structure—maintaining it at 50% upon new dual listings from the existing 30% for listed companies and 50% for unlisted ones—acts as shackles on businesses, Chair Joo explained, "(The requirement) is 50% unless it is a listed company, and applying a 30% shareholding requirement exclusively to listed companies was a special exception granted only to them."

He went on to say, "Within a holding company structure, significant control can be exercised with a small stake," adding, "Such special exemptions for listed companies are no longer suitable for South Korea's advanced capitalism."

(Photo: Yonhap News)

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