Han Gijeong "AI Technology May Restrict Competition Through Market Unfair Practices"

Fair Trade Commission Holds First AI Conference with OECD

Han Ki-jung, Chairman of the Fair Trade Commission, is delivering the opening address at the 'AI and Competition Policy' conference jointly hosted by the Fair Trade Commission and the OECD on the afternoon of the 27th.

Han Ki-jung, Chairman of the Korea Fair Trade Commission (KFTC), expressed concern on the 27th that rapidly advancing artificial intelligence (AI) technology could potentially establish entry barriers or strategically engage in market misconduct, thereby restricting competition.

At the 'Generative AI and Competition Policy' conference co-hosted with the Organisation for Economic Co-operation and Development (OECD) on the same day, Chairman Han stated that alongside the positive impacts of AI, there are concerns about fairness, reliability, misuse of technology, and market monopolization.

He pointed out, "If AI technology becomes monopolized, consumers will suffer damages, and the incentives for innovation through free market entry and fair competition among AI-related companies will also be limited."

He emphasized, "To ensure continuous innovative growth in AI-related industries while preventing misconduct by market participants, it is necessary to establish directions for competition policy and discuss the role of competition authorities."

The conference, jointly hosted by the KFTC and OECD, discussed competition issues arising from the development of generative AI and directions for competition policy.

First, in the session on 'The Role of Competition Policy in the Generative AI Supply Chain,' presentations and discussions were held on potential risks in the generative AI supply chain, responses by competition authorities in Korea and Japan, and policy implications. Speakers included Fr?d?ric Jenny, Chair of the OECD Competition Committee; Hwang Tae-hee, Professor of Law at Sungshin Women’s University; Lee Jun-heon, Director of Market Surveillance Policy at the KFTC; Yusuke Takahara, Deputy Director of the Japan Fair Trade Commission; and Shin Wi-ryeo, Professor of Economics at Chonnam National University.

Secondly, under the theme ‘Competition Issues and Strategies Related to Data in AI Models,’ presentations and discussions covered the importance of data in AI-based models, solutions to competition concerns arising from data, and policy directions for competition authorities. Presenters included Lim Yong, Professor at Seoul National University School of Law; Ori Schwarz, Head of the OECD Competition Division; Lee Hwa-ryeong, Director of Economic Analysis at the KFTC; and Choi Nan-seolheon, Professor at Yonsei University School of Law.

Following this, in a keynote speech, William Kovacic, former Chair of the U.S. Federal Trade Commission (FTC) and Professor at George Washington University, spoke on ‘Adaptive Platforms for Platform Regulation,’ addressing the capabilities required by competition authorities regulating information service platforms.

Finally, under the theme ‘Ensuring Competition in Cloud Computing Services and AI,’ presentations and discussions were held on potential market distortions related to cloud infrastructure services, competition concerns, and policy implications. Speakers included Fr?d?ric Jenny, Chair of the OECD Competition Committee; Kim Hee-cheon, Ph.D. at NCSoft; and Koo Sung-rim, Specialist at the OECD Competition Division.

The KFTC stated, "Based on the discussions held, we will monitor the legal and policy trends of overseas competition authorities and seek directions for competition policy suitable for the rapidly changing era of generative AI."