South Korea FTC Chief Signals Tougher Penalties for Repeat Cartels

According to Chosun Biz, Chair Ju outlined the proposal during the first policy briefing of the second half of the 22nd National Assembly’s National Policy Committee on July 28. He said the FTC intends to pursue institutional reforms designed to strengthen deterrence against repeated violations of the country’s competition laws.

Ju said the commission is intensifying enforcement against unfair business practices that directly affect consumers and household finances, describing the effort as part of a broader strategy to help stabilize the livelihood economy. According to Chosun Biz, he stated that the agency is working to crack down on anti-competitive conduct in sectors closely connected to everyday consumer spending.

The FTC chief also emphasized increased scrutiny of South Korea’s digital economy, where regulators have raised concerns about the market power of major online platforms. According to Chosun Biz, Ju said the commission would continue taking action against unfair practices by both domestic and foreign digital platforms that hold monopolistic positions, while enforcing competition rules “in accordance with the law and principles.”

The remarks come as competition authorities globally are expanding oversight of large technology companies over issues including market dominance, self-preferencing, exclusionary conduct, and barriers to entry. South Korea’s FTC has been among the more active regulators in Asia in investigating digital platform operators, alongside broader international efforts by authorities such as the European Commission, the U.S. Department of Justice, and the U.K.’s Competition and Markets Authority to address competition concerns in digital markets.

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Ju also highlighted the commission’s efforts to improve trading conditions for small and medium-sized enterprises (SMEs), particularly those involved in subcontracting, franchising, and retail distribution. According to Chosun Biz, the FTC is revising relevant laws and regulations to ensure economically weaker businesses receive fair and timely compensation.

As part of that effort, the regulator is prioritizing investigations into practices including technology misappropriation and delayed or unpaid payments, which have long been identified as areas of concern for smaller suppliers operating within South Korea’s industrial supply chains. Ju said the commission intends to respond firmly to violations of the law.

South Korea’s Fair Trade Commission serves as the country’s primary antitrust authority, enforcing competition laws, reviewing mergers, investigating cartel activity, and regulating unfair trade practices. The agency has increasingly combined traditional cartel enforcement with broader oversight of digital platform markets and commercial relationships between large corporations and smaller businesses.

According to Chosun Biz, the proposed reforms to strengthen penalties for repeat collusion offenders remain part of the FTC’s broader policy agenda. Any institutional changes, including measures such as business suspensions or corporate registration cancellations, would require implementation through the appropriate legal and regulatory processes, while the commission continues its enforcement activities against cartel conduct, digital market abuses, and unfair transactions.

Source: Chosun Biz