Politics · South Korea · 3 hrs ago
South Korea FTC chief proposes 1% revenue fines for obstructing investigations
South Korea’s Fair Trade Commission chief wants tougher penalties for companies that obstruct investigations.
Joo Byeong-ki said fines could be set at about 1% of a company’s total revenue.
He said the commission can enforce the law with its current administrative investigation powers, without being given the power to conduct compulsory searches.
The proposal follows cases involving Coupang’s refusal of an on-site inspection and Hanwha’s refusal to submit documents.
Under the law covering large retailers, obstruction currently carries only a fine, so Joo said lawmakers should allow larger financial penalties and daily enforcement fines.
He rejected claims that the commission targets US companies, saying domestic firms face higher fine rates.
Joo also said the commission would investigate an allegation that its trademark-fee inquiry information was leaked to Hanwha.
South Korea’s Fair Trade Commission chief, Joo Byung-ki, proposed fines of about 1% of total revenue for companies that obstruct investigations.
He said stronger financial penalties would improve enforcement without giving the commission compulsory investigative powers.
Joo said the law should be amended to allow fines and daily penalties for obstruction in cases under the Large-Scale Retail Business Act.
He rejected claims that the commission discriminates against US companies, saying domestic firms face higher fine rates.
He also said an internal inspection would examine allegations that commission investigation information was leaked to Hanwha.
- Who
- Fair Trade Commission chief Joo Byung-ki proposed the change.
- What
- He called for fines of about 1% of total revenue for obstructing investigations, and said the law should allow fines and daily penalties in relevant cases.
- When
- October 25, 2026.
- Where
- On KBS’s Sunday Diagnosis programme in South Korea.
- Why
- Joo said stronger penalties would make enforcement more effective; he said the commission did not need compulsory investigative powers.
US-side critics
Fair Trade Commission
Discrimination claim
US-side critics
Critics in the United States have argued that the commission’s actions against Coupang discriminate against US companies.
Fair Trade Commission
Joo said the commission does not discriminate by country and that domestic companies face higher fine rates.
Joo answered questions at a National Assembly audit of non-financial sectors.
Joo proposed fines of about 1% of total revenue for refusing investigations during an appearance on KBS’s Sunday Diagnosis.
- Proposed fine
- About 1% of total revenue
- Proposed legal changes
- Allow fines and daily penalties for obstruction in relevant cases
- Coupang case
- The commission currently can impose only administrative fines for obstruction under the Large-Scale Retail Business Act
- Interview date
- October 25, 2026
- Outlet
- Yonhap
1 source
What people are saying
It is effective for law enforcement to strengthen investigative powers by imposing a fine of around 1% of total revenue, rather than a slap on the wrist, when an investigation is refused.
The Fair Trade Commission’s law enforcement does not discriminate by country.
In the past, the rate of fines imposed on domestic companies was higher.
As suspicions have been raised, we will conduct a thorough internal inspection.