"I will listen to the Ministry of Oceans and Fisheries' opinion on shipping collusion during the plenary meeting process"… Fair Trade Commission Chairman reiterates principle-based stance

Chairman Jo Seong-wook, Policy Communication Meeting on the 27th

"Shipping Cartel Case Can Be Resolved Through Plenary Meeting"
"Strengthening Opinion Collection Procedures for Investigation and Deliberation Cases"
Plan to Add Written Submission Method for Opinion Submission

Ministry of Oceans and Fisheries: "We Don't Know What's Changing"

On the 27th, at the policy communication meeting held at the Government Sejong Complex, Cho Sung-wook, Chairman of the Fair Trade Commission, is speaking.

[Sejong=Asia Economy Reporter Joo Sang-don] Cho Sung-wook, Chairman of the Korea Fair Trade Commission (KFTC), stated regarding the Ministry of Oceans and Fisheries (MOF), which is in conflict over the shipping cartel case, that "we will activate the opinion collection procedures with related ministries." He announced plans to revise some rules to allow the MOF to participate in deliberations in writing at the plenary meeting, the final stage of the KFTC’s case handling process, to officially hear the MOF’s opinions. This is being evaluated as effectively shifting the responsibility to the MOF.

At a press briefing held on the 27th at the Government Complex Sejong, Chairman Cho said, "We will establish an official channel for government ministries to submit opinions to the KFTC regarding ongoing investigations and deliberations," adding, "For cases with significant inter-ministerial disagreements or major market impact, the KFTC will clearly stipulate the grounds to request opinions and statements from related ministries ex officio."

To this end, the "Rules on the Operation of the Fair Trade Commission Meetings and Case Procedures" will be improved. Currently, stakeholders or related ministries can participate in deliberations and express opinions upon application or at the KFTC’s discretion. The KFTC plans to go further by allowing witnesses to submit official written statements before the plenary meeting.

A KFTC official explained, "We intend to expand the ways to express opinions beyond oral statements to include written submissions," adding, "The purpose is to add and activate official means to express opinions during the KFTC’s deliberation process." Administrative rules can be implemented immediately after administrative notice and plenary meeting approval. This means the new rules can be applied to the ongoing shipping cartel case, which is awaiting the KFTC’s final deliberation.

Chairman Cho emphasized, "The system improvements will never bind the KFTC’s judgment to other ministries’ opinions or undermine its independence," and stated, "The shipping cartel is an illegal act that will be decided through the KFTC’s deliberation on its legality." He reiterated the existing principle of handling the case through the plenary meeting.

Chairman Cho’s remarks are interpreted as an intention to receive the MOF’s opinions. Earlier, during the National Assembly audit, lawmakers urged "communicate with the MOF," which was taken into consideration.

The MOF maintains the position that "nothing will change from before." A MOF official said, "Even now, related ministries can submit opinions and attend the plenary meeting to make statements on cases under investigation and deliberation by the KFTC, so we don’t know what difference adding written submissions will make," and criticized, "Ultimately, they are shifting responsibility to the MOF."

The shipping freight cartel case began when the Korea Timber Plywood Distribution Association reported it to the KFTC in August 2018. The KFTC’s secretariat (equivalent to prosecution) believes that 23 shipping companies colluded on freight rates on the Korea-Southeast Asia route from October 2003 to December 2018. To be recognized as a joint act permitted under Article 29 of the Shipping Act, it must be reported to the Minister of Oceans and Fisheries, but since the substantive and procedural requirements were not met, it is considered an unfair act. In response, the MOF issued a legal interpretation in July stating that the joint acts of the shipping companies fined by the KFTC do not violate the Shipping Act.

Meanwhile, Chairman Cho promised to speed up case handling. He said, "I take the delay in the KFTC’s case handling seriously as it means unfair market practices are not corrected for a long time and victims’ remedies are delayed," adding, "We will activate the ‘Case Handling Improvement Task Force’ to review the overall case handling status and prepare comprehensive measures to establish a swift and substantive case handling system."