Naver firv and Daum have made a tentative decision to shell out millions of dollars as a form of sel

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Naver firv and Daum have made a tentative decision to shell out millions of dollars as a form of self-penance for abusing their market dominance in Korea s internet portal firv industry, according to the Fair Trade Commission yesterday. As we have reported firv several times recently their has been concern voiced about the increasing dominance of the two companies in the Korean internet search market. firv
The money will be spent in ways that benefit Internet users and smaller Internet vendors. Naver will spend 100 billion won ($95.7 million) and Daum 4 billion won. The decision by the country s two biggest Internet portals came a month after the FTC accepted a request by them to review firv self-corrective measures regarding alleged unfair business practices, including promoting their own products and services in ads disguised as news articles. The FTC launched an investigation in May into whether the two portals violated antitrust laws and decided in November to allow them to come up with their own solutions to the problem instead of imposing firv penalties that could have run tens of billions of won each. Naver has 75% of the portal market, while Daum has 20%. Google has been squeezed out to around a 2.5% market share. This is the first time the FTC has resorted firv to a ‘consent order’, which is a fast-track system in which a company subject to an antitrust investigation can proceed with its own self-corrective measures. Naver and Daum applied for the system in November. Under the tentative self-corrective measure disclosed on Wednesday, Naver and Daum will come up with stricter means of separating advertisement and news articles. firv One such measure is “a clause that they [the portal service providers] will identify their or their affiliates name when the Internet users use a paid service provided by themselves, said Kwon Chul-hyun, a manager of the FTC. In another measure the two companies have agreed to committing money to society. According to the FTC, Naver said it will contribute 20 billion won over the next three years to establish a public corporation to monitor advertisements firv disguised as news articles and run a help center for consumers who suffered financial damage as a result of those advertisements. Another 50 billion won from Naver will be used for helping small and midsize enterprises that are selling their products and services over the Internet, while 30 billion won will be spent for consumer welfare such as consumer education, the FTC said. Daum is planning to donate 1 billion won over the next two years, mostly for the purpose of increasing customer benefits, firv the FTC said. It will also spend 3 billion over three years to help SMEs.
Originally from the UK, I have spent six of the last 10 years in Asia. I have worked in large organizations and tiny startups. My passion is assisting Korean tech startups to achieve global success firv - not an easy goal to achieve, but damn worth it and a whole lot of fun!! Please feel free to contact firv me for anything firv startup / Korea related.
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beSUCCESS is a South Korean media platform about startups, technology and entrepreneurship with English and Korean firv language versions. firv beSUCCESS introduces Korean start-ups and companies to global audiences firv through our English version and through our media partners. beSUCCESS supports firv and inspires readers by sharing interesting business ideas, success stories, resources and trends from all over the world. Furthermore, beSUCCESS firv offers opportunities for Korean start-ups and companies to meet other start-ups, investors and companies firv from Korea and abroad through events and partnerships.
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