Joo Byung-ki, Chairman of South Korea's Fair Trade Commission (FTC), announced on the 28th at the National Assembly Policy Committee that the agency is pursuing five core policy tasks this year. The initiative aims to resolve power imbalances between large and small enterprises, eliminate cartels, and establish a fair market environment for shared growth. The announcement follows the FTC's recent enforcement actions against cartels in the sugar, flour, and starch syrup sectors during a period of high inflation.
FTC Targets Power Imbalances Between Large and Small Enterprises
Chairman Joo stated the FTC is revising regulations in subcontracting, franchising, and distribution sectors to ensure economically weaker parties receive fair compensation on time. The commission is inspecting major unfair practices including technology theft and payment defaults, with firm responses to violations. The FTC plans to shorten payment settlement periods for large-scale retailers and improve systems to allow small and medium enterprises and small business owners to conduct collective negotiations with large corporations.
Commission Intensifies Cartel Crackdown in Consumer Goods Sectors
Chairman Joo stated the FTC recently detected and severely sanctioned cartels in the sugar, flour, and starch syrup sectors amid the high inflation crisis. The commission is pursuing institutional reforms to cancel registrations or suspend business operations for companies that repeatedly engage in cartel activities.
Digital Market Regulations Address Platform Monopolies
Chairman Joo stated the FTC will consistently respond to unfair practices by domestic and international online platforms holding monopolistic positions, in accordance with laws and principles. The commission will participate in legislative discussions at the National Assembly level to establish fair transaction order between platforms and tenant businesses.
Conglomerate Oversight Focuses on Internal Transaction Abuses
Chairman Joo emphasized the FTC will enhance the effectiveness of conglomerate regulations by thoroughly monitoring violations such as unfair internal transactions and private interest appropriation. The commission is strengthening the effectiveness of conglomerate policies by preventing evasion of private interest appropriation regulations and reducing incentives for duplicate listings within holding company structures.
FTC Pursues 400-Person Staffing Expansion
Chairman Joo stated the FTC is pursuing the addition of approximately 400 personnel for expedited case processing. The commission is advancing rationalization of economic penalties and strengthening economic sanctions to secure substantial deterrence against legal violations.
FAQ
What five policy tasks did the FTC Chairman announce on the 28th?
Chairman Joo Byung-ki announced five core tasks: resolving power imbalances between large and small enterprises, cracking down on unfair competition in public livelihood sectors, fostering innovation ecosystems in digital markets, enhancing conglomerate regulations, and increasing FTC staffing by approximately 400 personnel.
Why did the FTC take action against cartels in the sugar, flour, and starch syrup sectors?
The FTC detected and severely sanctioned cartels in these sectors during a period of high inflation crisis, as these products directly affect consumer prices and public livelihood.
