Nominee Cho Seung-hwan for Minister of Oceans and Fisheries, Pushes to Exclude Shipping Cartels from Fair Trade Act Application

Cho Seung-hwan, nominee for Minister of Oceans and Fisheries, is answering reporters' questions at the 2nd Cabinet announcement held at the transition committee briefing room in Tongui-dong, Jongno-gu, Seoul on the 13th. Photo by Transition Committee Press Corps

[Asia Economy Sejong=Reporter Dongwoo Lee] With Cho Seung-hwan, former president of the Korea Institute of Marine Science and Technology Promotion, being selected as the first Minister of Oceans and Fisheries under the Yoon Seok-yeol administration, there is a growing expectation that efforts to exclude the application of the Fair Trade Act to shipping cartel activities will accelerate.

Cho, who maintains the position that the characteristics of the industry should be considered regarding joint shipping actions, is interpreted as a potential variable in future sanctions by the Fair Trade Commission on maritime routes between Korea, China, and Japan.

According to related ministries on the 14th, Cho stated in his remarks, “If I become the Minister of Oceans and Fisheries, I will build a world-class maritime logistics system and breathe new life into the fisheries industry and fishing villages.”

This means he intends to communicate directly with the maritime and fisheries industry and devise ways to strengthen the competitiveness of domestic shipping companies to compete with the global shipping industry. The industry believes that Cho should actively pursue the exclusion of the Fair Trade Act’s application to current shipping freight cartels for this purpose.

Regarding this, Cho said, “The shipping industry does not compete only among our shipping companies but also with international shipping companies,” adding, “The so-called collusion among shipping companies needs to be addressed with appropriate solutions.”

Earlier, the conflict between the Ministry of Oceans and Fisheries and the Fair Trade Commission began in January this year when the Fair Trade Commission imposed a fine of 96.2 billion won on 23 domestic and foreign container shipping companies on the Korea-Southeast Asia route for freight collusion. Six days after the fine was imposed, the Ministry of Oceans and Fisheries held a press conference to refute the Fair Trade Commission’s decision, emphasizing the legitimacy of joint shipping actions. They argued that without joint actions, domestic cargo owners could suffer greater damage related to freight from global major shipping companies.

According to the current Shipping Act, considering the industry's special characteristics, a liner shipping company is recognized as engaging in legitimate joint action if it consults with a cargo owners’ group and reports to the Minister of Oceans and Fisheries within 30 days after reaching an agreement. If not reported, sanctions are imposed under the Fair Trade Act. Accordingly, the Ministry of Oceans and Fisheries and the industry hold the position that even if evidence of collusion among shipping companies is found, the Shipping Act, not the Fair Trade Act, should be proactively considered for application.

There is also a prospect that Cho, if appointed minister, could respond proactively to such issues. This is because the Fair Trade Commission has begun sanctioning freight collusion cases not only on the Korea-Southeast Asia route but also on maritime routes between Korea, China, and Japan.

A Ministry of Oceans and Fisheries official said, “Cho is a figure with extensive experience and trust within the ministry, and we expect him to approach the numerous pending issues quickly and strategically.”