Starting next year, the amount of ethanol allowed for direct sales, a key ingredient in diluted soju, will increase fivefold compared to current levels. This move aims to lower barriers for outside companies entering the municipal waste collection and transportation market, which has been plagued by monopolistic practices among a few local firms.
The Fair Trade Commission announced on August 25 that it has finalized plans for regulatory improvements aimed at enhancing competition, following consultations with relevant government departments. The commission has been working to identify and address competition-restricting regulations that hinder business activities.
Initially, the volume of ethanol permitted for direct sales between liquor manufacturers and ethanol producers will rise from the current 2% of total sales to 10% by 2027. Previously, the distribution of ethanol was largely confined to specific wholesalers, limiting competition among ethanol producers. The government plans to gradually increase the direct sales volume based on a comprehensive assessment of market competition and supply conditions.
The municipal waste collection and transportation market, which has suffered from regional monopolies, will also undergo changes. Local governments have historically denied permits to companies from outside their jurisdictions, allowing existing local firms to monopolize contracts and engage in bid-rigging. The government will revise guidelines to allow qualified companies from other municipalities to apply for permits to expand or change their operating areas, provided there are no legal impediments.
Additionally, the concentration of large accounting firms in the auditing market will be addressed. Under the periodic designation system for auditors of listed companies, medium-sized and small accounting firms that receive high-quality audit evaluations will be granted eligibility to audit larger corporations. To promote competition in auditing services in local areas, the requirement for accounting firms to establish branch offices will be eased from a minimum of three full-time accountants to just one.
The requirement for sanitary toilet and accessory certification to be supplied as a single packaging unit has been removed, strengthening the competitive foundation for domestic accessory manufacturers. This change reflects the challenges faced by local manufacturers when combining imported toilets with domestic accessories due to increased repackaging costs and logistical burdens.
A Fair Trade Commission official stated, "We will unlock the long-standing structural limitations on competition in the ethanol distribution and public service markets to promote genuine market competition. We also plan to identify additional competition-restricting regulations in the second half of the year and announce them by the end of the year."
* This article has been translated by AI.
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