Small firms hold 2nd session on Naver‘s unfair practices

Aug 31, 2013, 09:05 am

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Small firms, "Chairman Lee Hae-Jin should reflect and ask himself if he became evil or not"



On August 30, Small Business Federation Organizing Committee held 'The 2nd briefing session on Naver's unfair practices against small business' at the Korea Federation of Small and Medium Business in Seoul and censured Naver for its unfair practices.

On August 30, Small Business Federation Organizing Committee held 'The 2nd briefing session on Naver's unfair practices against small business' at the Korea Federation of Small and Medium Business in Seoul. The committee urged to pass laws to stop 'dinosaur portal' Naver's tyranny and to protect small businesses.

The committee reported Naver's unfair business practices against smaller firms and issued a statement requesting to define Naver as a 'market-dominating enterprise'.

Choi Seung-Jae, the committee chairman, said, "We request to define Naver as a 'market-dominating enterprise' for active regulation with revision of Fair Trade Act."

According to the statement, Naver has been enjoying high profits from its search advertisement business while ignoring small firms' damages. Most of its search advertisers are small business owners.

NHN recorded 722.6 billion Won in 2Q profits, 194.2 billion Won in operating earnings. Compared to Q2 2012, this is a 26.3 percent increase in profits, and 19.6 percent increase in operating earnings.

Naver, which controls nearly 80 percent of the local online search market, has been criticized for abusing its power by setting high advertising rates. However, its search ad revenue increased by 10.4 percent.

Naver also received criticism after announcing a set of measures for mutual growth with venture startups since those measures were 'superficial'.

Kwon Soon-Jong, the chairman of Naver Affairs Committee under Small Business Association, said, " Naver decided to exit its real estate information business after the 1st announcement of its unfair practices on the 7th. However, it is nothing but collusion among large real estate information providers. There wasn't a plan for small business owners."

Meanwhile, Comdoctor119 CEO Lee Byung-Sung, who attended the session as one of damaged enterprises, mentioned Google's slogan, "Don't be evil", and said, "Naver chairman Lee Hae-Jin should reflect and ask himself if he became evil or not."

Copyright by Asiatoday