Hankyungyeon, Sangui, Muhyeop and 3 Other Organizations Express Opinions
The Korea Economic Association, the Korea Chamber of Commerce and Industry, the Korea International Trade Association, and four other economic organizations expressed on the 31st their opinion urging a "reconsideration" of the Fair Trade Commission's revised guidelines on reporting violations, stating that it "must be reconsidered."
Earlier, the Fair Trade Commission announced the administrative notice of the revised guidelines on the 19th, titled 'Guidelines of the Fair Trade Commission on Reporting Violations of the Monopoly Regulation and Fair Trade Act and Other Related Laws.' The revision includes expanding the scope of sanctions by, in principle, including related parties as subjects of reporting when a business operator engages in unfair internal transactions. It also added abstract criteria, allowing reports to be made considering the "social ripple effects," even if the legal violation is not severe or clear.
Regarding this, the business community pointed out that "our country's Fair Trade Act is far from global standards, which may further increase uncertainty in the business environment." They also explained, "Our economy is currently suffering from the triple burdens of high inflation, low growth, and trade deficits. Strengthening regulations to allow easy reporting of businesspeople for unclear reasons could impose a heavier burden on an already difficult economy."
They also argued that the revision exceeds the scope delegated by higher laws. The business community stated, "The Fair Trade Commission is an institution recognized for its expertise in the economic field and is granted the primary authority to judge the necessity of legal disputes. Unlike other countries, since Korea's Fair Trade Act covers many regulatory areas beyond general competition law, the Fair Trade Commission should play a buffering role to restrain the abuse of criminal penalties."
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