Fair Trade Commission Strengthens Penalties for Violations of the Large-scale Retail Business Act... Fine Raised to 100 Million Won

[Sejong=Asia Economy Reporter Kwon Haeyoung] From next year, businesses that commit serious violations of the Large-scale Distribution Business Act will be fined a minimum of 400 million KRW in administrative fines.

The Fair Trade Commission announced on the 14th that it will publicly notify the amendment of the "Standards for Imposing Administrative Fines on Violators of the Large-scale Distribution Business Act" containing this content until July 3rd.

The amendment adjusts the administrative fine standards of the Large-scale Distribution Business Act, which were lower compared to the Fair Trade Act and the Franchise Business Act, to be consistent with those laws.

Under the Large-scale Distribution Business Act, the administrative fine standard for ▲ "very serious violations" has been raised from the previous 300 million KRW or more to less than 500 million KRW to 400 million KRW or more to less than 500 million KRW. ▲ For "serious violations," the standard has been adjusted from the previous 100 million KRW or more to less than 300 million KRW to 200 million KRW or more to less than 400 million KRW. ▲ For "less serious violations," the standard has been changed from the previous 10 million KRW or more to less than 100 million KRW to 5 million KRW or more to less than 200 million KRW.

The amendment also changes the existing regulation that allowed a reduction of more than 50% in administrative fines if the violator's capital impairment ratio was 50% or higher, deciding to reduce fines only when it is difficult to continue business without the reduction. This is based on the judgment that it is unreasonable to reduce fines solely based on the capital impairment ratio when the violator has sufficient ability to pay the fines.

The definition of "violation amount" related to delayed payment acts now newly includes payments for directly purchased products.

The Fair Trade Commission plans to implement the amended notice from January 1st next year. Even if violations occurred this year, the amended notice will apply if the review takes place next year.