Fair Trade Commission Chairman Joo Byung-ki said he will consider revising rules so that companies cannot avoid the antitrust regulator's investigative procedures, following Coupang's outright refusal of an on-site inspection.
"It is regrettable that the effectiveness of the FTC's on-site inspections has been neutralized" by the Coupang case, Joo said at a press briefing on the 21st marking his first year in office. "We will review our internal investigation rules and consider rule changes aimed at eliminating any room for companies to evade inspections."
Coupang had refused an FTC on-site inspection over suspected violations of the Act on Fair Transactions in Large Retail Business, arguing that the agency had not followed advance notification procedures. The company then filed a lawsuit seeking to cancel the inspection, along with a request for a stay of execution. With the court temporarily suspending the effect of the inspection decision until the 23rd of this month, the FTC has been unable to proceed. Joo's expression of regret over a judicial decision is unusual.
Joo stressed that the large retail business act is "a last line of defense to protect economically weaker parties such as small merchants and suppliers, so if FTC investigations are effectively blocked, it becomes difficult to protect their rights." He drew a line, however, at strengthening the FTC's investigative powers themselves through measures such as compulsory investigations or the introduction of special judicial police officers, saying that "most companies cooperate with FTC investigations."
On his announcement in May that the FTC would file a criminal complaint against Coupang Chairman Bom Kim over allegedly submitting false data to avoid being designated as the group's controlling shareholder, Joo said the agency is "still verifying legal violations through a review of the materials." He added, "We will complete the review quickly and take action in accordance with the law and principles."
Asked about recent pressure from the U.S. House of Representatives, which has taken issue with the FTC's sanctions on Coupang and targeted Joo directly and indirectly, he said, "If necessary, we will relay our views through the Ministry of Foreign Affairs," adding that the agency will "enforce the law while maintaining procedural fairness."
Joo said the FTC will also move quickly on the tasks piled up for the second half of this year. It will first take on monopoly structures in the defense industry, where competition has been restricted on national security grounds. The plan is to overhaul a system of designating defense materiel under which a handful of companies effectively supply certain items exclusively, and to encourage new entrants.
He also signaled legislation soon to restrict market participation by businesses that repeatedly engage in cartels. The FTC is consulting with relevant ministries on measures such as license revocation or business suspension for some 20 industries with persistent collusion, including firefighting facility construction, waste and environmental services, and passenger transport. On structural remedies such as forced business transfers, Joo said they are "a means of resolving abuse of monopoly and oligopoly positions while guaranteeing property rights."
On delivery app fees, he said the "commissions and advertising charges borne by participating merchants are excessive," arguing they should fall below current levels. The FTC also plans to keep pursuing special legislation with the National Assembly to lower the excessive cost burden in the delivery app market.
