[2025 Audit] Fair Trade Commission Chairman: Easing Separation of Banking and Commerce for Advanced Industries like AI "Under Discussion with Relevant Ministries"

Allegations of Consumer Deception Over Movie Tickets
"Excessive Profits Gained by Telecom Companies"

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

The Fair Trade Commission announced that it is discussing with relevant ministries the possibility of easing the separation of banking and commerce regulations exclusively for advanced industries such as artificial intelligence (AI).

On October 28, Joo Byungki, Chairman of the Fair Trade Commission, stated at the National Assembly’s Political Affairs Committee audit, “As the President has said, we are preparing measures to promote investment in advanced strategic industries while minimizing side effects such as concentration of economic power and monopolistic abuses,” adding, “We are consulting with the relevant ministries.”

Previously, on October 1, President Lee Jaemyung indicated during a meeting with Sam Altman, CEO of OpenAI, the developer of ChatGPT, that he would consider partially easing regulations such as the separation of banking and commerce in the AI sector.

Lawmakers from both the ruling and opposition parties pointed out that simply easing the current corporate venture capital (CVC) regulations would not be effective. They argued that, as in advanced countries, large corporations should be allowed to invest using the general partner (GP) model.

However, they emphasized that the principle of separating banking and commerce remains valid, and that companies should be cautious about adopting the GP model, which would allow them to directly create and operate funds.

Joo said, “Facility investment and CVC are different,” adding, “Given the global economy’s high uncertainty, I believe the risk transfer and prevention of monopolistic abuses provided by the separation of banking and commerce remain valid.”

He continued, “We need to establish the most efficient investment measures, and CVC deregulation or separation of banking and commerce should be discussed in that direction. Even export-oriented conglomerates have not been able to fully utilize the relaxation of CVC separation of banking and commerce regulations.”

Chairman Joo also revealed plans to establish a digital market analysis team dedicated to handling issues such as AI or algorithmic collusion. Responding to suggestions that the Fair Trade Commission should form a dedicated team with digital market analysis experts, Joo said, “We are planning for this new task now.”

Regarding allegations that SK Telecom and KT deceived consumers over movie ticket sales, he said, “It appears clear that they gained excessive profits,” adding, “We will verify the facts and take strict action.” Previously, the People’s Solidarity for Participatory Democracy and the Lawyers for a Democratic Society (Minbyun) reported SK Telecom and KT to the Fair Trade Commission for alleged violations of advertising laws.

The two companies provide discounted movie ticket reservation services to subscribers through their websites or membership apps. This is done by purchasing tickets in bulk from theaters or settling accounts after the fact.

Civic groups claimed, “The companies have listed the regular price of tickets bought for 5,000 to 7,000 won as 15,000 won on weekends, and then advertised a 4,000 won discount through membership point deductions. Consumers are led to believe they are receiving a discount, but in reality, the telecom companies gain at least 4,000 won per ticket while maintaining their membership programs.”

Regarding suspicions of shrinkflation at Kyochon Chicken, Chairman Joo said, “We are investigating in cooperation with the Ministry of Food and Drug Safety.” Kyochon F&B, which operates Kyochon Chicken, faced criticism last month after it began mixing chicken breast with what had previously been an all-thigh boneless menu and reduced the total weight by about 30 percent, effectively raising prices. On October 23, the company restored the original weight in response to the backlash.