The mandatory implementation of the KC Certification, or Korea Certification, in response to the controversy over harmful products on Chinese distribution platforms, was scrapped within three days due to consumer backlash. Regulating direct overseas purchases, which have already become a consumer trend, is neither feasible nor desirable.
The correct approach is to enhance the competitiveness of the domestic distribution industry, which is reliable in terms of safety. Outdated regulations hindering the distribution industry must be lifted first. Large supermarkets with strong offline distribution channels are hampered by rules introduced in 2012, such as mandatory closure twice a month to support traditional markets and the ban on online deliveries from midnight to 10 a.m. These regulations have benefited large online retailers rather than market merchants. Over the past decade, the number of traditional markets nationwide has decreased from 1,502 to 1,408, while online shopping has increased to over 50%.
In an era where the boundaries between online and offline and domestic and international distribution are disappearing, regulations targeting only domestic superstores are outdated. Recently, when regions like Daegu and Dongdaemun-gu in Seoul allowed superstores to operate on Sundays, sales in nearby traditional markets also increased. This indicates that superstores and traditional markets can be symbiotic partners rather than competitors.
To block the influx of harmful foreign products, measures should be taken to mandate that foreign platforms comply with domestic laws and take responsibility for consumer damages by establishing local legal representatives in the form of domestic subsidiaries. Although an amendment to the e-commerce law, which includes the designation of domestic representatives, was proposed in the 21st National Assembly, it has yet to be addressed. This bill should be prioritized. Policies to promote “reverse direct purchases” are also needed to enable domestic distributors to venture into overseas markets. This requires a significant increase in joint logistics centers that support the overseas logistics and delivery of small and medium-sized vendors.
After carcinogens were detected in Chinese direct purchase products, their sales in April plummeted by over 40%. The government should focus on strengthening product safety verification and promptly releasing related information to ensure the market’s self-regulation functions effectively.