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We bring you more updates from South Korea on Inquivix Insights. We bring you news on how eCommerce is changing the shopping experience with ‘mobile gift giving’ and benefits to new sellers entering the eCommerce market. We also bring you updates on how the Medical platform industry is expected to go through a change with TMON’s new platform. In more Korean digital news, Kakao has started a new trend in publishing content with their site Brunch. In advertising news, Google has decided to restrict app tracking affecting personalized/targeted ads. Meanwhile, the Korean authorities are ensuring the safety of the viewers with regulations related to ‘unfair’ advertising, and broadcast advertising.
1. TMON Is Challenging the Medical Platform Industry
TMON is thinking about starting a platform firm that provides health care and medical information. It appears to be a method of sharing hospital procedures, costs, and reviews. Users may discover the institution they’re searching for by reading reviews posted by other individuals. According to industry sources, it will develop a profit model by combining hospitals, advertising, and sharing reviews.
2 . Google Restricts App Tracking: Will Personalized Ads Disappear?
Following Apple’s lead, Google has also decided to improve Android phone users’ privacy. The major objective is to reduce the amount of data collected about users and their use of apps. This is expected to put an end to the “customized advertising era” in which social media and advertising firms like Facebook gather data from mobile phone customers and use it for marketing.
The company stated that it would take two years to put these plans in place. The objective is to continue utilizing the current approach, which allows for personalized advertisements, for the next two years while undergoing discussions with the sector. “Our goal is to develop effective, privacy-enhancing advertising solutions,” Google stated. “Developers and advertisers will have successful advertising tools on mobile while protecting users’ information.”
3. Korea Communications Commission Converts Broadcasting Advertisement Regulation To A “Negative” Approach
The Korea Communications Commission (KCC) is aiming to completely overhaul the broadcast advertisement regulatory system to a “negative approach.” The KCC has decided to freely allow broadcast advertising unless strictly prohibited, and legislation is planned for release by the end of the year. KCC will provide a general overview of key principles that may be applied to all advertisements, regardless of type, and will discuss post-regulation and evaluation processes to protect the viewers.
4. Continuing Investigations by Fair Trade Commission for Using ‘No. 1’ Phrase in Advertisements
The Fair Trade Commission (FTC) has launched an intensive investigation against Eduwill, an online learning company that advertised with the claims “No. 1 in the number of successful applicants” and “No. 1 in civil servants,” for unfair advertising. Consumers are misled by advertising phrases like “No. 1” that they can misinterpret, according to FTC. The Fair Trade Commission appears to have taken this action in earnest, due to the fact that no substantial changes have been made by the company after several years of complaints.
5. “Mobile Gifts” Are Becoming Popular in the Graduation and Admission Season
The number of instances of exchanging gifts online has risen as a result of non-face-to-face culture. The statistics have shown that the “mobile exchange ticket,” which is convenient to purchase and send, has become a trend gift among the MZ generation and is gaining popularity. As a result, the distribution sector is also developing its mobile gift service using its apps.
6. 11street, a 50% Refund on Advertising Fees for New Sellers
11Street, the Korean eCommerce site, will offer more benefits to the new sellers on the platform. After entering the store, they only need to pay 6% of the sales fee in all categories from the time they enter the store to the end of the year. In addition, the sellers will get 200,000 points that may be used for advertising goods, as well as a 50% refund (up to 500,000 points) on paid marketing costs. 11Street said that it has strengthened its entry benefits and support policies to induce competitive new sellers and achieve good results together.
7. Kakao Brunch Surpasses 50,000 Writers
The number of writers registered on “Brunch,” a content publishing platform, has reached 50,000, according to Kakao. As the Brunch projects continued to be released, there were around 2,900 authors and 4,600 published books. Since last year, it has been adding to its content area with e-books and online classes from Class 101. Brunch is a content-publishing platform built by Kakaoa in June 2015 with the goal of making “a space where the text becomes work”. It’s made up of qualified Brunch writers who’ve gone through an additional author approval procedure to ensure the quality of their work.
In today’s article we discussed how TMON is challenging the medical platform industry in South Korea with its new platform to share information about medical practices. However, this is challenging due to regulations by medical bodies. In the meantime, the KCC has opted for a ‘negative’ approach to broadcast advertising by letting the advertisements broadcast under key principles and evaluating them later until a more comprehensive regulation system is decided. Further on advertising in South Korea, FTC is continuing its mission to regulate and penalize ‘unfair’ advertising practices by companies, this time by investigating a claim to be ‘No.1’ in the education sector. In addition to this, Google’s decision to restrict app tracking will impact personalized and targeted advertising practices. The eCommerce industry will have to come up with a strategy to face this challenge.