Korea's Fair Trade Commission Struggles to Collect Fines Despite Increased Penalties

The Fair Trade Commission (FTC) has expanded its investigations and penalties, enhancing its role as an economic watchdog. However, the agency is increasingly struggling to collect fines that it has imposed. Reports indicate that instances of uncollected fines are rising each year, raising concerns about the effectiveness of its enforcement actions. Critics argue that while the FTC has strengthened its investigative and punitive measures, it has failed to support the final stage of enforcement: collection.

According to data submitted by the FTC to Lee Yang-soo, a member of the National Assembly's Political Affairs Committee, the amount of unpaid fines reached 79.845 billion won at the end of last year. This figure represents an 82.8% increase from 43.668 billion won in 2021 and marks five consecutive years of growth.
The proportion of unpaid fines within the total outstanding amounts has also increased significantly. The share of unpaid fines rose from 8.3% in 2021 to 18.6% last year. The number of businesses with unpaid fines grew from 114 to 127 during the same period.
Unpaid fines refer to amounts that are not paid without legitimate reasons, unlike those subject to installment payments or court-ordered delays. This metric reflects the FTC's collection capabilities and the effectiveness of its penalties.
As unpaid fines rise, there are also numerous cases of long-term delinquencies exceeding 20 years. Companies such as Samboo Finance, Jonggeum Finance Investment, Han-gyeol Finance, and Ghana Finance Consulting have fines due since 1999 but remain unpaid. Jeju Transportation and New Daewon Tourism have overdue fines from 2000, while Cheongju Ready-Mix Concrete has been delinquent since 2001, and Ivy Corporation since 2002.
The FTC has stated that it is verifying the assets of delinquent corporations and has begun seizing properties to halt the statute of limitations. However, some delinquencies have persisted for over 20 years, making it difficult to predict when actual collections will occur.
High-profile delinquencies continue to emerge. Shin Asan Industrial Development has the largest unpaid fine at 7.888 billion won, followed by Cheongjeonggye at 6.43099 billion won, Daeryuk Railroad at 6.11603 billion won, Myungju File at 4.945 billion won, and Saesuwon Pharmaceutical at 3.455 billion won. While the processes of imposing fines and collecting them are separate, the accumulation of long-term unpaid fines inevitably diminishes the effectiveness of penalties.
This year, the FTC has undertaken two organizational restructurings, aiming to increase its workforce by over 400 to significantly enhance its investigative and punitive functions. The agency has established a key investigation planning team, effectively reviving its investigative division for the first time in 21 years. Additionally, it plans to expand its capabilities to address complex cases involving collusion, platform monopolies, and internal transactions within large corporations.
In contrast, the actual collection of fines has been managed by only two personnel over the past five years. The FTC plans to add six more staff members to the operational support team responsible for collection and delinquency management, but specific assignments have yet to be finalized. An FTC official stated, "We are monitoring the situation regarding the National Tax Service's integrated collection law and will review our collection operations accordingly."
However, there are concerns that alongside strengthening investigative and punitive functions, the FTC must also enhance its delinquency management and collection capabilities. Securing effective collection is essential for the FTC to ensure the efficacy of its penalties.
The National Assembly Budget Office previously highlighted in its analysis of the 2026 budget proposal that the amount of unpaid fines, penalties, and surcharges is increasing. It warned that prolonged delinquencies could undermine the establishment of a fair legal order and the equity of compliant taxpayers, as well as the effectiveness of punitive measures.
The office noted that as the duration of delinquencies increases, the burden of surcharges grows, and there is a risk of these becoming uncollectible losses. It emphasized that even if penalties for collusion and unfair trade practices are strengthened, the effectiveness of law enforcement is difficult to secure if fines are not actually collected.
Kim Yong-o, a budget analyst at the office, stated, "It is undesirable for the collection of fines to vary based on the economic circumstances of businesses. We need to enhance efforts to reduce unpaid fines through active collection activities, including asset investigations, payment reminders, and on-site inspections in cooperation with relevant agencies."