Joo Byeong-gi, chair of the Fair Trade Commission, expressed strong regret over the delays in field investigations and corrective measures against collusion due to companies' requests for injunctions. He stated, "The last bastion for the economically vulnerable is being completely undermined," emphasizing the need to consider the rights of small businesses and consumers protected by the commission's law enforcement.
During a meeting with reporters on September 21 at the government complex in Sejong to mark his first anniversary in office, Joo commented on the recent legal disputes surrounding field investigations related to the Large-Scale Distribution Business Act. He noted, "If we postpone for about 30 days, we can effectively say that the field investigation's effectiveness is nullified."
The Fair Trade Commission launched a field investigation at the end of last month to gather information regarding allegations of violations of the Large-Scale Distribution Business Act by Coupang. However, Coupang claimed it was not notified in advance of the investigation and filed a lawsuit to annul the commission's decision, along with a request for an injunction.
The court has suspended the effectiveness of the investigation decision until September 23. Coupang argues that the Fair Trade Commission did not comply with the Administrative Investigation Basic Act, which requires agencies to notify the subjects of an investigation in writing at least seven days in advance. Previously, Hanwha also requested a suspension of the effectiveness of a data submission order, which the court granted.
Joo explained that the Fair Trade Commission's field investigations are conducted with the consent of the subjects being investigated, distinguishing them from police and prosecution searches. He stated, "Field investigations do not prevent companies from operating or halt production activities," and added, "The situation where we are unable to conduct field investigations is a very serious matter."
He emphasized that most of the commission's regulations serve as the last line of defense for the economically vulnerable, particularly the Large-Scale Distribution Business Act, which protects the rights of small businesses. He urged that when assessing whether the right to defense is infringed upon due to investigations, it is essential to compare it with the public interest protected by law enforcement.
Joo also expressed his intention to review internal rules related to investigations, stating, "We will look into revising various internal rules concerning Fair Trade Commission investigations to clearly eliminate any possibility of evasion."
Regarding the suspension of the effectiveness of price re-determination orders in some cases, he remarked, "It is very regrettable that we have lost the opportunity to periodically assess price re-determination and the recovery of competition," and added, "The judiciary should weigh both sides fairly when determining irreparable disadvantages."
He plans to expedite the handling of major cases. The investigation into allegations of collusion among oil companies regarding fuel prices is set to conclude by October, after which a decision will be made on whether to initiate deliberation procedures. The commission is carefully reviewing the complexities of the bidding system and its impact on the financial market and the national economy in the case of collusion involving government bonds, which has already undergone three plenary sessions.
The merger between Naver and Dunamu is under review with a goal of completing the assessment by the end of the year. This merger involves dominant platforms in search, easy payment, and virtual assets, and the commission is analyzing its competitive impact on over ten related markets. In response to concerns that delays in the review increase the burden on companies, Joo stated, "Since this involves a merger between two dominant market players, we must make a careful judgment."
The key investigation planning team, set to launch on October 1, will address collusion and various legal violations that affect people's livelihoods. Joo stated, "We will strengthen economic sanctions so that the economic costs of legal violations significantly outweigh the unfair profits gained from unfair practices."
* This article has been translated by AI.
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