South Korea's Antitrust Chief Pushes for Tougher Penalties on Companies Obstructing Probes

South Korea's antitrust chief is seeking to impose harsher financial penalties on companies that hinder investigations, Yonhap News Agency, South Korea's national news agency, reported on Sunday.

The chair of the Fair Trade Commission, Joo Byung-ki, proposes fines equivalent to 1 percent of a company's total revenue for obstructing investigations, aiming to strengthen the watchdog's enforcement powers.

Joo emphasized that the existing investigative authority of the Fair Trade Commission is largely sufficient but stressed the need for more severe penalties against non-cooperative companies.

Currently, some laws enforced by the Fair Trade Commission allow for financial penalties and criminal sanctions for obstructing investigations, but the Act on Fair Transactions in Large Retail Business only provides for administrative fines.

This limitation was highlighted in a recent dispute involving e-commerce giant Coupang, which thwarted the Fair Trade Commission's on-site investigation in August.

Joo is calling for legal revisions to permit heavier financial penalties and enforcement fines in such cases, saying that the current penalties are too lenient.

The proposed changes aim to make law enforcement more effective and strengthen investigative powers.

The Fair Trade Commission's efforts to enhance its enforcement capabilities come as it faces challenges in investigating large companies, including Coupang.

In a broader context, South Korea's Fair Trade Commission plays a crucial role in promoting fair market competition and protecting consumer rights, and its efforts to strengthen its investigative powers are seen as part of a broader effort to improve the country's business environment.

The proposed revisions to the law are expected to be debated in the National Assembly, where they will face scrutiny and potentially undergo changes before being passed into law.