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Korea’s Antitrust Watchdog Faces Backlash Over Alleged Favoritism Toward Foreign Firms

By  |  June 2, 2025

The Korea Fair Trade Commission (KFTC) is under growing scrutiny for what critics describe as an overly lenient approach toward global tech giants, raising concerns about inconsistent regulatory enforcement standards between domestic and foreign firms.

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    According to the Korean Times, the KFTC recently accepted a voluntary proposal from Google Korea aimed at resolving concerns over its business practices. The U.S.-based tech giant agreed to separate YouTube Music from its YouTube Premium bundle and pledged 30 billion won (approximately $21.8 million) as part of a corrective measure. While the move marked a conclusion to a prolonged investigation, observers noted the absence of any formal penalties, prompting criticism over the apparent lack of regulatory teeth.

    By contrast, Korean companies have not received similar treatment. As Korean Times reported, the KFTC imposed a record-breaking fine of 162.8 billion won last year on local e-commerce firm Coupang, citing allegations of algorithmic manipulation to favor its private-branded goods. The sanction was widely seen as an aggressive response to the firm’s business practices.

    Read more: South Korea’s Supreme Court Upholds FTC Fines in Major Shipping Antitrust Case

    The disparity continued earlier this year when the commission levied 114 billion won in penalties against South Korea’s three major mobile carriers, accusing them of collusion in altering subscriber transition figures. Such enforcement actions have sparked claims of reverse discrimination, where domestic companies are held to stricter standards compared to their multinational counterparts.

    Critics argue this perceived imbalance undermines the credibility of Korea’s regulatory environment, particularly as the country navigates tense trade negotiations with the United States. Among the contentious issues is Washington’s ongoing 25 percent tariff on core Korean exports, including steel and automobile parts—a context that some analysts believe may be influencing the KFTC’s softened stance toward U.S. firms.

    The commission, often referred to as a “conglomerate sniper” for its traditionally tough position on chaebols and domestic conglomerates, now finds itself in the crosshairs of public and political scrutiny.

    Source: Korean Times