Chairman Joo Byeong-ki of the Fair Trade Commission emphasized that Coupang is no longer a lightweight but a heavyweight representative of South Korea, stating, "They must act responsibly according to their stature." He also indicated that a legal amendment is necessary to impose fines of up to 1% of total sales for companies that refuse investigations.
During an appearance on KBS's 'Sunday Diagnosis Live' on October 25, Joo addressed Coupang's refusal to cooperate with the investigation, saying, "When a heavyweight player exerts market power, it can be a weapon against economically vulnerable small businesses. It is the Fair Trade Commission's duty to monitor such actions, and the starting point of that oversight is the administrative investigation by the Commission."
He added, "We have sent a report regarding the imposition of fines for the refusal of the administrative investigation, and the review process is currently underway."
Joo pointed out that the current Large-Scale Retail Business Act only allows for fines in cases of obstruction or refusal to cooperate with investigations, which he sees as problematic. He noted, "In the case of the Fair Trade Act, fines and compliance orders can be imposed, and criminal sanctions are also possible. The Large-Scale Retail Business Act only allows for fines and does not permit criminal sanctions, so legal amendments are urgent."
He elaborated, "When refusing an investigation, imposing fines should not be lenient; for example, fines could be set at around 1% of total sales to strengthen investigative authority, making law enforcement much more effective."
However, Joo took a cautious stance on granting the Fair Trade Commission compulsory investigation powers. He stated, "Most businesses cooperate with the Fair Trade Commission's administrative investigations, and currently, there are no significant issues with enforcing the law using only administrative investigation powers." He believes that strengthening sanctions for refusal to cooperate is more efficient than introducing compulsory investigation powers.
In response to claims from the U.S. about discrimination against American companies, Joo countered, "The Fair Trade Commission's law enforcement does not discriminate against countries. In fact, we enforce the law much more rigorously against domestic companies." He explained that the large fines imposed on foreign companies like Google or Microsoft are due to their enormous related sales figures, adding, "When comparing fine rates, domestic companies actually face higher fine rates."
Regarding allegations of leaked investigation information related to Hanwha Group's trademark fee transactions, Joo stated that an internal audit is underway. He noted, "We recognized some signs of obstruction during the on-site investigation and are conducting an internal audit due to the allegations of information leaks." However, he clarified that the actual occurrence of information leaks has not been confirmed and that necessary actions will be taken based on the audit results.
In light of recent criticisms about the high rate of court injunctions against Fair Trade Commission actions, Joo responded, "The decision to grant injunctions does not imply that the Fair Trade Commission's actions are illegal." He explained that injunctions are a system designed to prevent irreparable harm, and the legality of the actions will ultimately be determined in the main lawsuit.
Joo also emphasized that the current system, where the Fair Trade Commission handles both investigations and adjudications, operates with strict separation between the two to ensure swift law enforcement and victim protection.
Regarding investigations into collusion in the livelihood sector, he announced that the first case of the Fair Trade Commission's newly launched focus investigation team, which began on October 1, is nearing completion with an on-site investigation into collusion among food companies. Joo stressed the need to actively address monopoly issues in markets that significantly impact the lives of ordinary citizens.
He also indicated plans to increase the level of sanctions for collusion, stating, "Even when enormous unjust profits are gained through collusion, the penalties imposed through law enforcement often do not exceed the unjust profits, which is why collusion is repeated. We aim to set fines at a level that sufficiently exceeds the unjust profits."
* This article has been translated by AI.
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