Fair Trade Commission to Introduce Direct Reporting System for Unfair Economic Practices

From now on, if 300 or more citizens or 30 or more businesses agree, it will be possible to file a direct complaint with investigative agencies without going through the Fair Trade Commission, leading to possible prosecution. Fair Trade Commission Chairman Ju Byung-ki announced plans to introduce a 'direct reporting system' in a CBS Radio interview on the 15th, explaining that the system will enhance the effectiveness of economic sanctions and alleviate the FTC's monopolistic indictment authority. The exclusive indictment right, which requires an FTC complaint for prosecutors to bring charges, has been maintained for 46 years since its introduction in 1980 and has faced criticism for granting the FTC a monopoly on indictment rights. Chairman Ju explained that the current system is an indirect method where investigative agencies, after investigating a case, make a mandatory reporting request to the FTC, which then issues the indictment. He stated that the new system will allow investigative agencies to directly pursue prosecution even without a reporting request, thereby strengthening practical enforcement.

To enhance the effectiveness of economic sanctions, the upper limit for surcharges will be significantly raised. The surcharge, currently capped at 6% of relevant sales, is planned to be increased to a maximum of 20%, more than triple the current level. This measure considers the profits that can be gained from abusing dominant market positions. For instance, in the 'sugar cartel' case, a surcharge of approximately 400 billion won was imposed on a case involving over 3 trillion won in relevant sales.

The issue of surcharges being reduced during litigation will also be improved. Although the FTC's win rate is high at 95%, measures will be taken through revisions to enforcement decrees and official notices to establish legal limitations and prevent the dilution of sanctions' effects due to reduction provisions.

The commission has also reaffirmed its plan to investigate suspicions of 'gasoline price collusion' raised during the recent period of rising oil prices. On-site inspections have been completed targeting gas stations in specific regions such as Busan, Gyeongbuk, and Jeju. Once the investigation concludes, corrective orders or surcharge impositions will be issued. Chairman Ju emphasized that for Korean companies to stand shoulder-to-shoulder with advanced nation corporations, the Fair Trade Act must also operate according to advanced nation standards. These system improvements are measures to strengthen the competitiveness of the Korean economy and foster a fair market environment.