[2020 National Audit] Seongwook Jo "Aware of Business Community's Concerns on Exclusive Prosecution Rights Abolition... Will Seek Communication Opportunity"

Final Audit of the Political Affairs Committee

"We Will Steadily Pursue a Comprehensive Revision of the Fair Trade Act"

Jongwook Cho, Chairman of the Korea Fair Trade Commission (center), is attending the National Assembly's Public Administration and Security Committee's audit held at the National Assembly on the 22nd, responding to questions from lawmakers. [Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] Cho Sung-wook, Chairman of the Fair Trade Commission, stated on the 22nd, "I understand that the business community is concerned about overlapping investigations, separate investigations, and excessive litigation regarding the abolition of exclusive prosecution rights."

On this day, Chairman Cho responded to Min Byung-duk, a member of the Democratic Party of Korea, who pointed out at the National Assembly’s Political Affairs Committee comprehensive audit that "the business community opposes the abolition of the exclusive prosecution system."

Chairman Cho said, "To alleviate these concerns from the business community, we have signed a memorandum of understanding (MOU) with the prosecution, and we will have opportunities to listen to and communicate about why these concerns arise," adding, "We will steadily pursue the revision of the Fair Trade Act, which centers on abolishing the Fair Trade Commission’s exclusive prosecution rights for so-called 'hard collusion' such as price and bid rigging."

When Park Yong-jin, a member of the same party, asked about the determination to push forward the comprehensive revision of the Fair Trade Act, Chairman Cho said, "I believe that the law revision is ultimately a law that will make the Korean economy sound and enhance corporate value," and added, "I will work with strong determination to revise the Fair Trade Act."

Regarding the question of whether expanding the scope of regulations on internal transactions for preferential treatment (private interest infringement) would excessively restrict internal transactions, he firmly said, "It will not." He continued, "The regulation targets unfair internal transactions, not normal internal transactions," and answered, "Although private interest infringement has been regulated so far, there have been blind spots, and we will pursue legal revisions to reduce these."