The Fair Trade Commission (FTC) is set to enhance monitoring of collusion in essential sectors and introduce a system for canceling registrations and suspending operations of businesses that repeatedly engage in collusion. The FTC aims to ensure a fair competitive environment for small businesses and consumers by responding strictly to violations and exploitative practices by economic powerhouses.
During a National Assembly audit on October 12, FTC Chairperson Joo Byeong-ki stated, "For sustainable economic growth and fair development for all citizens, a fair market system must be firmly established, allowing all economic entities to pursue creativity and innovation within a balanced power structure."
To achieve this, the FTC will focus its efforts on four key tasks: establishing fair trade order in essential sectors, protecting economically vulnerable groups, fostering innovation in the digital market ecosystem, and monitoring violations by large business groups.
The FTC will first strengthen monitoring of collusion in sectors closely related to the livelihoods of citizens, such as food, energy, education, and housing. It also plans to respond strictly to unfair practices in welfare facilities and essential goods markets.
Chairperson Joo emphasized, "To fundamentally eradicate chronic collusion prevalent in our economy, we will introduce a system for canceling registrations and suspending operations of repeat offenders. We will also expand effective institutional measures, such as establishing legal grounds for price re-determination orders and extending the statute of limitations for collusion cases."
The FTC is also working to establish a fund for the swift recovery of victims of unfair trade and to enact a comprehensive dispute resolution law. It plans to broaden the scope of FTC data usage in damage lawsuits and improve unreasonable trading practices, such as unfair terms in wedding venues and golf courses, as well as the opaque management of advance payments in funeral services.
Additionally, the FTC aims to enhance the negotiating power of economically vulnerable groups, including small and medium-sized enterprises, small business owners, self-employed individuals, and special employment workers. Joo stated, "We will reform the fair trade law system to ensure that collective actions by these groups do not constitute collusion, allowing them to voice their concerns legitimately."
In the franchise, subcontracting, and agency sectors, the FTC will revise regulations to facilitate effective group formation and discussions. It will utilize technology protection monitors and anonymous reporting centers to prevent malicious practices such as technology theft, delayed payments, and the shifting of safety costs, while also enhancing the stability of subcontractor payments.
The FTC will strengthen regulations against monopolies in the digital market. It plans to adapt existing monopoly regulations to the digital environment and support legislative discussions to protect vendors and consumers from unfair practices and abuses by dominant platforms in online transactions.
Chairperson Joo remarked, "We will respond strictly to abuses of monopoly in digital sectors such as delivery apps, app markets, and semiconductors. We will also proactively prevent new types of consumer harm, such as exaggerated advertising and deceptive marketing practices that exploit generative artificial intelligence (AI)."
Monitoring of violations by large business groups will also be intensified. The FTC plans to impose fines for false submissions of designated data or omissions of affiliates and to regulate private gains accrued during periods of non-designation due to false data submissions. It will respond strictly to unfair internal transactions and preferential treatment.
The FTC's enforcement system will undergo a comprehensive reform. It will revise the exclusive reporting system to allow a certain number of citizens and central administrative agencies, as well as regional governments, to directly report to investigative authorities. Regional governments will be granted investigation and enforcement authority in subcontracting, franchising, and agency sectors. While economic sanctions such as fines will be raised to levels comparable to advanced countries, excessive economic penalties will be rationally adjusted.
Chairperson Joo concluded, "The FTC will respond strictly to violations and exploitative practices by economic powerhouses, allowing companies to focus solely on their core business and technological innovation. We will concentrate the FTC's core capabilities to ensure a fair playing field for small businesses and consumers."
* This article has been translated by AI.
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