[Why&Next] Fair Trade Commission's Sword Aimed at KMA's General Strike... The Key Issues

KMA Headquarters and Local Medical Associations On-Site Investigation
KMA Is a Business Entity, Not a Labor Organization
Whether 'Coercion' of Members Determines Illegality

Competition authorities have launched an investigation into the Korea Medical Association's (KMA) general strike in protest against the government's policy to increase the number of medical school admissions. The KMA is suspected of coercing doctors to participate in the strike, which is centered around private practitioners such as local clinics. If the KMA, as a business association rather than a labor union, unfairly restricts the business activities of its members, it may face fines under the Fair Trade Act and criminal prosecution. The key issue in determining illegality is whether coercion occurred, and the investigation results are expected as early as next month.

On the afternoon of the 7th, a placard condemning the government's increase in medical school quotas was set up at the Korean Medical Association building in Yongsan-gu, Seoul. Photo by Heo Young-han

According to related ministries on the 20th, the Fair Trade Commission (FTC) sent an investigation team to the KMA headquarters office on Ichon-ro, Yongsan-gu, Seoul, the previous day to conduct an on-site inspection. The office of the Daejeon Medical Association, where strike participation was high, was also included in the investigation. FTC investigators reportedly carried an official document stating "Investigation of violation of Article 51, Paragraph 1 of the Monopoly Regulation and Fair Trade Act (Fair Trade Act)" and secured materials related to the general rally and official letters sent by the KMA to regional medical associations. The FTC's on-site inspection came just two days after the Ministry of Health and Welfare submitted a report claiming that the KMA's collective action constitutes prohibited conduct by a business association.

This situation differs from the collective resignation of residents (interns and residents) centered around the Big 5 large hospitals in February. At that time, the residents, who are trainees employed by hospitals, actively led the strike, but this time, private practitioners are participating under the KMA's leadership. While residents have the legal status of workers, the KMA, centered on private practitioners such as local clinics, is classified as a business association. A legal expert said, "If the KMA exerted influence to coerce individual doctors, who should decide on strike participation and clinic closures themselves, it would constitute a violation of the Fair Trade Act."

Daehan Medical Association Hall, Ichon-dong, Yongsan-gu, Seoul

The FTC is closely monitoring whether there was illegality in the KMA's decision and execution of the general strike. The key issue in determining illegality is whether the KMA leadership, as a business association, coerced member doctors to participate in the strike. If evidence is secured showing that the KMA encouraged private practitioners to join the strike or warned of disadvantages for non-participation, sanctions can be imposed under Article 51 of the Fair Trade Act. Article 51, Paragraph 1, Subparagraph 3 of the Fair Trade Act stipulates that "business associations shall not unfairly restrict the business content or activities of their constituent businesses." A representative from a major domestic law firm stated, "Based on precedents, if a business association systematically forces collective work stoppages, it may violate the law. However, the core issue will be proving whether the decisions of private practitioners to close their clinics were made under coercion."

Following the indefinite closure of Seoul National University Hospital, on the 18th, hospitals and clinics nationwide decided to close their doors under the leadership of the Korean Medical Association (KMA). An elevator at a hospital in Seoul displays a notice indicating no afternoon consultations. Photo by Jo Yongjun jun21@

In similar cases such as the 2000 separation of drug prescribing and dispensing and the 2014 opposition to the introduction of telemedicine, the FTC applied this legal provision and issued corrective orders and fines. During the 2000 separation of drug prescribing and dispensing, when the nationwide clinic closure rate reached 80%, the fact that doctors who did not participate in the closure were threatened and verbally abused by other doctors was considered as evidence of coercion. At that time, KMA President Kim Jae-jung had his medical license revoked after being found guilty of violating the Fair Trade Act and Medical Service Act. In the 2014 strike, the FTC secured evidence that the KMA pressured participation by notifying all members of detailed strike action guidelines such as wearing black ribbons and turning off external signs, but the court acquitted the KMA as coercion was not accepted.

If the FTC concludes that this strike violates the Fair Trade Act, the KMA may be fined up to 1 billion KRW, and related KMA leaders may face imprisonment of up to two years or fines up to 150 million KRW. Considering that cases involving violations of the Fair Trade Act by business associations typically take one to two months to process, a conclusion is expected by next month. The FTC stated, "Considering the urgency and the impact on the public, we will conclude the matter as swiftly as possible."