Fair Trade Commission Chairman Ju Biung-ghi speaks during a meeting with condustruction industry officials in Seoul, Thursday. Yonhap
The Fair Trade Commission's (FTC) move to revive a long-defunct investigation bureau is reigniting debate over whether the step will strengthen market oversight or further weigh on corporate sentiment.
The antitrust watchdog said it will launch a new Key Investigation Planning Bureau to handle large-scale violations involving online platforms, monopolistic practices and major conglomerates.
The unit is widely viewed as a revival of the FTC’s former Investigation Bureau, which was dismantled in 2005 amid criticism that it excessively interfered in corporate management activities.
The previous bureau had gained notoriety for conducting sweeping investigations into major business groups, often dubbed the “grim reaper of the business community.”
FTC Chairman Ju Biung-ghi said the new body would function as a specialized organization capable of quickly identifying and correcting complex, high-profile cases.
“It will serve as a rapid-response task force that can improve the speed and effectiveness of investigations when nationwide consumer damages issues arise,” Ju told reporters during a press conference Tuesday.
Fair Trade Commission Chairman Ju Biung-ghi speaks during a press conference at Government Complex Sejong, Thursday. Yonhap
However, concerns are mounting within the business community that the FTC’s renewed investigative drive could lead to excessive regulation and discourage corporate investment at a critical time when Korea’s capital market is rapidly growing with a record rally of the benchmark KOSPI.
Critics argue the move, combined with other business-sensitive legislation, such as the contentious “yellow envelope law,” a revision to labor regulations that expands workers’ rights, will end up shrinking corporate investment. The law also enables subcontractor unions to directly seek compensation from primary contractors, broadening the scope of labor disputes.
Source: Korea Times News
