[2025 Audit] Joo Byungki: "Reporting External Contacts by FTC Employees Still Necessary"

Joo Byungki, Chairman of the Fair Trade Commission. Photo by Yonhap News

Joo Byungki, Chairman of the Fair Trade Commission, stated on October 28 that the regulations for managing external contacts by Fair Trade Commission employees are "still necessary."

During a National Assembly Political Affairs Committee audit that day, Chairman Joo said, "From the perspective of maintaining internal discipline, there is a need to reactivate the reporting system," clarifying his position.

However, he added, "We will manage this carefully so that it does not hinder the collection of public opinion," and emphasized, "We need to be even more proactive in gathering public feedback."

The Fair Trade Commission implemented a regulation in 2018, during the tenure of former Chairman Kim Sangjo, requiring its officials to report to the audit officer whenever they have contact with representatives from large corporations (those with total assets of 5 trillion won or more) or major law firms handling Fair Trade Commission matters.

However, concerns have been raised that this rigid system, having been in place for a long time, has left working-level officials such as deputy directors and directors isolated from external parties, effectively trapping them on a "remote island."

Regarding the "difference franchise fee" in the franchise sector, which has recently seen a series of lawsuits from franchisees, Chairman Joo acknowledged, "It is indeed excessive," and stated, "If there are aspects that the Fair Trade Commission can judge as illegal, we will conduct a thorough investigation."

The difference franchise fee refers to the fee that franchisors charge franchisees by adding a profit margin when supplying essential items such as raw materials.

Heo Young, a lawmaker from the Democratic Party of Korea, pointed out, "The difference franchise fee accounts for 51.4% of the total sales from goods supplied by franchisors," and added, "While the Fair Trade Commission says it will provide incentives for switching to a royalty-based system, it should also strengthen penalties."