Fair Trade Commission Separates 'Investigation' and 'Policy'... Establishes First-Class Investigation Manager Position

Fair Trade Commission Develops Plan to Improve Law Enforcement System
Complete Separation of Policy and Investigation Functions
Revising Procedures and Standards for Swift Case Handling

[Asia Economy Reporter Eunju Lee] The Fair Trade Commission (FTC) has launched a major organizational restructuring. The plan is to separate the investigation and policy departments to improve the law enforcement system, thereby enhancing the efficiency of case handling and strengthening the separation between the investigation and adjudication departments.

On the 16th, FTC Chairman Han Kijeong announced that the commission will implement the "FTC Law Enforcement System Improvement Plan" based on these principles. The aim is to improve case handling procedures and standards, and to enhance the predictability and transparency of the organizational restructuring process.

The Secretary General will oversee only 'policy', while the Investigation Director will oversee 'investigations'

Currently, the Secretariat is divided into policy and investigation departments. The restructuring will assign the Secretary General (Grade 1), who has overseen the entire FTC organization, to handle only policy functions. A new position of Investigation Director (Grade 1) will be created to exclusively manage investigation functions. Chairman Han explained, “While the Investigation Director position is newly established, from an organizational efficiency perspective, one director-level and one manager-level position will be reduced. However, this does not mean that any bureau or division will be eliminated.”

Chairman Han described this restructuring as a measure to improve efficiency, such as speeding up case processing. The plan is to determine sub-organizations and allocate personnel based on the workload of investigation and policy tasks. Initially, the number of investigation and policy bureaus will be equal. However, Han noted, “The investigation sector will have a larger workforce and more subordinate divisions.” He also stated, “Cases currently under investigation will continue to be handled by the responsible divisions.” To this end, the FTC will revise regulations related to case handling, such as the Case Procedure Rules, Investigation Procedure Rules, and Delegation and Approval Regulations, to clearly stipulate that the Secretary General cannot interfere with the Investigation Director’s authority.

Furthermore, the separation between the investigation and adjudication departments will be further strengthened to enhance the independence and fairness of adjudications. The FTC plans to provide equal reporting opportunities to respondents and examiners and restrict personnel transfers from the investigation department to the adjudication department.

"Strengthening Corporate Defense Rights" Restructuring... Clarifying the Scope and Limits of Investigation Authority

The restructuring will also proceed in a direction that strengthens the defense rights of companies under investigation. To enhance predictability regarding the exercise of investigation authority, the FTC will clarify the scope and limits of investigation powers. During on-site investigations, the investigation notice will explicitly state the types of transaction areas related to alleged legal violations and the key investigation periods. For transaction areas, the scope will be limited and specified to subfields within the business areas of the investigated company.

If materials are collected beyond the scope stated in the investigation notice, an official return request procedure will be introduced, establishing an "objection procedure." Even if the investigated company voluntarily submits materials during the on-site investigation, they will be given an additional opportunity to review the relevance of the submitted materials to the investigation purpose afterward. Also, to facilitate investigations, it will be generally prohibited to prioritize investigations of compliance support departments such as the CP team and legal team. Investigations of compliance support departments will only be conducted strictly when necessary, such as when there is direct involvement in evidence destruction.

Additionally, a preliminary opinion hearing procedure will be introduced to clarify basic facts and issues by instituting an official face-to-face meeting process between the investigated company and the case manager during the investigation stage. The FTC stated, “This measure focuses on enhancing the predictability, efficiency, and expertise of FTC law enforcement,” adding, “By establishing a rapid processing system for each case type, it will strengthen relief for long-term cases and improve predictability regarding processing periods.” The FTC further expressed, “We expect that improving the predictability and efficiency of FTC law enforcement will significantly increase public and market trust in the FTC.”