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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Kakao will no longer be able to force partner sellers on its "KakaoTalk Gift" e-commerce platform to offer free shipping, following a settlement reached with South Korea’s Fair Trade Commission (KFTC).
On July 21, the KFTC announced its final approval of a consent decree addressing Kakao's alleged violation of the Act on Fair Transactions in Large Retail Business (commonly known as the Large Retail Business Act).
The case stemmed from allegations that Kakao had required partner merchants to include shipping costs in the listed sales prices of their products—effectively mandating free shipping—and then charged excessive commission fees based on the inflated total.
Merchants were not allowed to choose alternative delivery options such as paid shipping or conditional free shipping, and were subject to commission fees that also applied to shipping costs.
Once the investigation began, Kakao voluntarily submitted a corrective action plan and requested a consent decree procedure in 2023. The KFTC initiated the process in January 2025, collecting input from stakeholders and relevant agencies before finalizing the agreement.
Under the terms of the settlement, merchants will now be free to choose their preferred shipping options and may separate product prices and shipping fees, thereby reducing their overall commission burden.
In addition to the revised shipping policy, Kakao has committed to further improvements, including lowering payment gateway (PG) service fees, freezing consignment sales commission rates, and introducing a fair trade compliance program.
The consent decree is a legal mechanism that allows companies to end regulatory investigations by voluntarily implementing corrective actions, without admitting to wrongdoing.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
