"Cargo Solidarity Refuses Investigation" Fair Trade Commission Files Complaint with Prosecutors

Plenary Meeting Approves Prosecutor Referral for 'Obstruction of Investigation' Charges
No Personal Referral Against Chairman Lee Bong-ju

[Asia Economy Reporter Eunju Lee, Sejong = Reporter Seungseop Song] The Korea Fair Trade Commission (KFTC) on the 18th made a final decision to file a complaint with the prosecution against the Cargo Solidarity Headquarters of the Korean Confederation of Trade Unions Public Transport Workers' Union (Cargo Solidarity) for obstructing an investigation. However, it resolved not to file a separate complaint against Lee Bong-ju, the chairman of Cargo Solidarity.

According to the KFTC on the day, a plenary meeting was held at the Government Complex Gwacheon on the 16th to deliberate on whether to file complaints against Cargo Solidarity and Chairman Lee Bong-ju. This was because the subcommittee could not reach a conclusion on the 10th, so the members brought the agenda to the plenary meeting. At the plenary meeting on the 16th, Chairman Han Ki-jung and non-standing member Kim Dong-a were absent, with a total of seven members attending. The KFTC plenary meeting requires a majority vote of the nine registered members to pass a resolution.

At the plenary meeting, the members judged that it was necessary to file a complaint with the prosecution against Cargo Solidarity. The KFTC began on-site investigations of the Cargo Solidarity office three times on December 2, 5, and 6 last year to verify facts regarding alleged violations of Article 40(1) on unfair joint acts and Article 51(1) on prohibited acts by business associations under the Monopoly Regulation and Fair Trade Act during the collective transportation refusal by the Cargo Solidarity Headquarters. However, the Cargo Solidarity side blocked the entrance of the building housing their office and prevented the investigating officials from entering, making it impossible to conduct the investigation.

According to the KFTC, this is the first time an investigation itself was impossible due to refusal by the investigated party. Previously, business operators such as Apple Korea who destroyed or concealed investigation materials or delayed investigations were reported to the prosecution, but even then, the investigation itself was conducted. The KFTC's decision to file a complaint came 50 days after it announced on November 29 last year, during the general strike, that it would review Cargo Solidarity's legal violations, and 47 days after starting the on-site investigation. While it is generally customary to review both the originally intended legal violations and obstruction of investigation acts, this time the agenda on obstruction was reviewed promptly first.

The KFTC resolved not to proceed with a separate complaint against Lee Bong-ju, the chairman of Cargo Solidarity. Lee Seung-gyu, head of the Cartel Division, explained, "Because there was no evidence that the chairman directly ordered or decided to obstruct the investigation." Earlier, at the plenary meeting, members pointed out regarding the department's opinion that individual complaints against Chairman Lee Bong-ju were necessary, stating, "There must be direct evidence such as the individual blocking entry to the site or ordering concealment or destruction of evidence." The KFTC plenary meeting involved intensive deliberation on whether proper procedures were followed during the on-site investigation process.

The KFTC explained that this complaint decision is a resolution regarding Cargo Solidarity's 'obstruction of investigation acts,' and the final judgment on Cargo Solidarity's status as a business entity will be made through the main investigation. Lee Seung-gyu, head of the Cartel Division, said, "There are members within Cargo Solidarity who are actual transport operators registered as businesses, so it was judged that they could be subject to KFTC investigation as a business association. However, specific illegality will be judged in the main investigation." KFTC spokesperson Moon Jae-ho also explained, "The KFTC considered there was sufficient basis to view Cargo Solidarity as a business association, so it was subject to investigation, but it has not made a full judgment on whether it is a business association."

At the KFTC plenary meeting, there were also criticisms that efforts to secure procedural legitimacy during the attempt to conduct the on-site investigation of Cargo Solidarity were insufficient. Cargo Solidarity argued in their statement that the KFTC forced the on-site investigation even though it could have proceeded with already disclosed materials or written investigations. Standing Commissioner Ko Byung-hee pointed out, "In situations where there is social controversy over the investigation with the investigated party, sufficient explanation and persuasion efforts should have been made to induce participation in the investigation." Commissioner Lee Jeong-hee also pointed out, "In unusual cases where the investigated party refuses to respond or obstructs the investigation, sufficient opportunities for explanation should have been provided."

Park Jae-seok, Secretary General of the Cargo Solidarity Union, is speaking at the "Press Conference Urging the Amendment of Articles 2 and 3 of the Trade Union Act" held in front of the National Assembly in Yeouido, Seoul on the 13th. Photo by Kang Jin-hyung aymsdream@