Record-Breaking Cartels, Record-Breaking Fines... Fair Trade Commission Imposes 1 Trillion Won in Just Four Months

1.068 Trillion Won Imposed Across 36 Cases from January to April

Unfair Collaborative Acts Account for 96.6% of Total Fines

The total amount of fines imposed by the Fair Trade Commission this year surpassed 1 trillion won in just four months. This result is due to the combination of a strong determination to investigate collusion cases and faster case processing. With the minimum standard rate for fines set to be raised significantly, the risk of regulatory exposure for companies is expected to increase further.

1 Trillion Won in Just Four Months—Record-Breaking Pace... Third Time After 2017 and 2021

Chairman Byeonggi Joo of the Fair Trade Commission speaking at the inauguration ceremony of the 3rd 2030 Advisory Group held at the Fair Trade Commission's mediation center on the 28th. Photo by Yonhap News.

On April 29, a comprehensive tally by the Fair Trade Commission of all fines (including penalty surcharges) announced this year, covering the period from January to the present, revealed that a total of 1.068 trillion won was imposed across 36 cases. This is the third time that annual fines have exceeded 1 trillion won, following 2017 (1.3308 trillion won) and 2021 (1.0083 trillion won). Last year’s figure was approximately 354.7 billion won (provisional tally).

Although this year’s tally includes provisionally imposed amounts and may differ from the actual collected sum, considering the scale of large cases scheduled in the coming months, records are expected to be easily broken. The fines for the collusion cases involving starch syrup and flour, which are expected to conclude as early as next month, are each anticipated to approach 1 trillion won.

This “record-breaking pace” has been driven by investigations into “unfair collaborative acts,” or collusion. Of the total fines, 96.6% (1.0322 trillion won) are attributable to collusion cases. Last year, this proportion was 61.7%, and in previous years, it typically hovered around 60–70%. This surge results from the conclusion of major cases such as the four major banks’ loan-to-value (LTV) ratio collusion case (January, 272 billion won), the sugar price-fixing case (February, 408.3 billion won), and the paper manufacturers’ price-fixing case (April, 338.3 billion won).

Organizational Reform Separating Investigation and Policy Hits the Mark... “No Concern Over Poor Investigations”

These achievements are underpinned by the Fair Trade Commission’s structural reforms. In the past, the commission was criticized for “delayed investigations” during parliamentary audits, but in 2023, it established the Investigation Management Officer position and systematically separated “investigation” and “policy” functions. This change, the first in 33 years, replaced the previous system of policy and investigation departments within each division, creating dedicated investigative units such as the Cartel Investigation Bureau that can now focus solely on case handling. As a result, the speed of case processing has increased dramatically. Chairman Byeonggi Joo stated in February that “the average processing period for collusion cases last year was 281 days, more than 50% shorter than three years ago.”

Additionally, the commission’s speed has increased due to the “case-handling task force (TF)” system, which assigns multiple investigators to large, high-impact cases, and the active use of summary procedures that allow for written deliberations. A Fair Trade Commission official explained, “The shortening of processing times did not happen overnight; it is the result of continuous efforts to improve the system.”

As processing times have shortened, some have expressed concerns about the possibility of poor investigations or losses in administrative lawsuits. However, the commission’s legal track record remains robust. Over the past five years (since 2020), the success rate for finalized lawsuits stands at 90.9% by number of cases and 95% by the amount of fines. While there have been some exceptions, such as the recent loss in the Samsung Welstory case, the commission maintains that the overall legitimacy of its enforcement is recognized by the courts.

Staff Expansion and Stricter Standards... 100% Surcharge for Repeat Collusion from the 30th

The Fair Trade Commission’s enforcement is expected to become even tougher. This year, the commission expanded its headcount by 167 employees and is planning to add another 200 next year. If this proceeds as planned, the organization will reach a staff size of 1,000. President Lee Jaemyung, during his first cabinet meeting after taking office in June last year, repeatedly emphasized the need for more staff, stating, “There are rumors that many cases are being shelved due to the commission’s understaffing.”

Sanctions will also become much stricter. Starting April 30, the commission will implement a revised notification that raises the minimum standard rate for fines by up to twentyfold, depending on the degree of violation. In cases of collusion, a minimum standard rate of 10% will be applied upon detection. Furthermore, if a company has been ordered to pay a fine for collusion at least once in the past ten years, the fine may be increased by up to 100%, meaning the burden for companies will become significantly heavier.

This content was produced with the assistance of AI translation services.