Fair Trade Commission Grants Metropolitan Governments Authority Over “Three Major Laws”…Comprehensive Reform of Exclusive Accusation Rights [Work Report]

Investigation and Enforcement Authority for Subcontracting, Franchising, Agency, and Labeling/Advertising Granted to Local Governments
Direct Accusation Rights Expanded Through Reform of Exclusive Right to Accuse

The Fair Trade Commission has decided to revise the exclusive right to file accusations policy, granting major metropolitan governments such as Seoul and Gyeonggi the authority to investigate and take action in key sectors including subcontracting, franchising, agency, and labeling and advertising. The revision will also recognize the direct right to file accusations with investigative agencies for a specified number of citizens, as well as metropolitan governments, and others.

Joo Byung-ki, chairman of the Fair Trade Commission, is speaking at the ministerial work report meeting hosted by President Lee Jae-myung on the 4th at the Blue House State Reception Hall. Photo by Yonhap News.

Joo Byung-ki, Chairman of the Fair Trade Commission, reported this plan for “improving the fair trade enforcement system” during the presidential work report held at the Blue House's State Guest House on the 4th. This will result in a major decentralization of the Fair Trade Commission's enforcement powers. Metropolitan governments will be granted the authority to investigate violations of the so-called “Three Major Subcontracting, Franchising, and Agency Laws” and the Labeling and Advertising Act, as well as the power to impose fines and recommend corrective actions.

At a pre-briefing held the previous day, Nam Dong-il, Vice Chairman of the Fair Trade Commission, stated, “Based on feedback from local governments, there is consensus on the general direction, but some pointed out the need for a period to gain enforcement experience, budgetary constraints, and the accumulation of expertise.” He added, “We will expand the new system in stages depending on what local governments can accept, and will also consider various ways to strengthen expertise, including the dispatch of Fair Trade Commission personnel.”

In addition, the Fair Trade Commission plans to amend the exclusive right to file accusations system by eliminating its monopoly on accusations, granting the right to file direct accusations with investigative agencies to a specified number of citizens, central administrative agencies, and metropolitan governments. Addressing concerns about excessive use of this right, Vice Chairman Nam explained, “We are approaching the extension of this authority to lower-level local governments with caution, reflecting opinions raised in Cabinet meetings and elsewhere, and are preparing safeguards such as establishing ‘(tentative name) accusation review committees’ within each institution to prevent potential abuses.” Regarding the establishment of the Serious Crimes Investigation Agency in line with the amendment to the Criminal Procedure Act, he stated that the agency authorized to request accusations has been designated as the new agency, thus preventing any disruption in enforcement.

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