Korea University ICR Center Holds Academic Seminar on Penalty Surcharge Funds

The Innovation, Competition, and Regulation Law Center (ICR Center) under the Korea University Legal Research Institute announced on the 3rd that it held an academic seminar titled "Issues of Victim Relief Funds through Penalty Surcharges under Fair Trade-Related Laws."

Academic seminar on penalty funds held by Korea University ICR Center on the 29th of last month. Korea University

This event was the first academic seminar in the legal field to address the creation of a victim relief fund using penalty surcharges. It was held on the 29th of last month in the main conference room of the Korea Federation of SMEs.

During the seminar, presentations included: "The Legal Nature of Penalty Surcharges and Their Relevance to Usage" by Lee Seunghoon, a professor at Korea University School of Law; "Penalty Surcharges under the Fair Trade Act and Economic Discussions on Damage Compensation" by Kim Jongmin, Dean of the College of Economics and Business at Kookmin University; and "Issues of Victim Relief Funds Utilizing Penalty Surcharges under the Fair Trade Act" by Park Changkyu, adjunct professor at Korea University Law School.

In the subsequent comprehensive discussion, participants from academia, practitioners, and the Korea Fair Trade Commission shared a variety of perspectives.

The Korea Fair Trade Commission imposes and collects penalty surcharges amounting to several hundred billion won each year for violations of fair trade-related laws. However, the entire amount is incorporated into the national treasury and is not directly returned to the affected companies or consumers. As a result, victims must rely on damage lawsuits, but effective relief is difficult due to the costs and burden of proof.

This seminar academically examined these issues and provided a forum to discuss various ways to allocate part of the penalty surcharges to a victim support fund, which could be used for operating expenses, legal costs, and partial compensation for damages.

Lee Hwang, Director of the ICR Center and planner of the seminar, stated, "This seminar is significant as the first academic seminar in the legal field to address penalty surcharge funds," adding, "I hope this will serve as an opportunity to highlight the justification and rationality of such funds, leading to the enactment of the 'Unfair Trade Victim Support Fund Act.'"

Meanwhile, the Korea University ICR Center continues to lead research in various legal fields such as competition law and regulatory law, with openness and convergence, practical connections, global cooperation, and talent development as its core values.