[2020 National Audit] "Half of Companies Receiving Win-Win Growth Incentives Investigated by Fair Trade Commission"

Yoon Chang-hyun "Practical Incentives Needed to Encourage Voluntary Win-Win Growth Among Companies"

[Asia Economy Reporter Moon Chaeseok] Although the Fair Trade Commission offers exemption from ex officio investigations as an incentive to excellent win-win growth companies, it has been revealed that many companies have undergone ex officio investigations.

On the 8th, Yoon Chang-hyun, a member of the National Assembly's Political Affairs Committee from the People Power Party, conducted a full analysis of the Fair Trade Commission's list of investigated companies. The results showed that among 133 companies that received incentives at least once by achieving 'Highest' or 'Excellent' grades in the Win-Win Growth Index evaluation, 62 companies (46.6%) underwent 111 investigations.

Of these investigations, 13 cases (11.7%) were cleared without charges.

The full analysis period covers from 2013, when the Win-Win Growth Index evaluation results were first announced, up to September of this year.

Source: Office of Yoon Chang-hyun, People Power Party.

Among the 20 companies announced last year as Honorary Highest Companies (achieving highest grade for three consecutive years or more), 10 companies (18 cases) underwent ex officio investigations during the incentive period.

These companies include Naver (NAVER), Daesang, CJ CheilJedang, SK, SK Construction, LG Household & Health Care, LG Chem, Yuhan-Kimberly Co., Ltd., KT, and Hyundai Engineering.

Rep. Yoon pointed out, "When announcing the Win-Win Growth Index evaluation results, it is made to seem as if all ex officio investigations are exempted, but the Fair Trade Commission's internal standards (regulations) include provisions allowing ex officio investigations of companies that received incentives."

According to the investigation response Yoon received from the Legislative Research Office, the Ministry of Economy and Finance, Ministry of Justice, National Tax Service, and the Win-Win Commission apply incentives to relevant companies annually and manage their performance. Only the Fair Trade Commission lacks incentive management data, so it is excluded from the management status data, he criticized.

Rep. Yoon demanded, "Substantial incentives should be guaranteed to companies that have achieved good win-win growth in accordance with government policy."