[Alpha Biz= Kim Minyoung] South Korea’s long-standing system granting the Fair Trade Commission (KFTC) exclusive authority to initiate criminal complaints in antitrust cases is facing a potential overhaul after 46 years, following calls from President Lee Jae-myung to expand prosecution rights.

KFTC Chairman Joo Byung-ki reported reform measures during a Cabinet meeting held at the presidential office on March 31, outlining plans to revise the exclusive complaint system and expand the scope of complaint requests.

Under the current framework, prosecutors can only bring charges for violations of competition-related laws—such as the Monopoly Regulation and Fair Trade Act and subcontracting laws—if the KFTC first files a complaint. The system was originally designed to ensure that a specialized regulatory body assesses whether criminal penalties are warranted, given the complexity of economic analysis involved in antitrust cases.

Chairman Joo proposed allowing individuals and companies harmed by unfair practices to directly file complaints against suspected violators. To prevent excessive or frivolous filings, the plan would require a minimum threshold—such as 300 individuals or 30 businesses—to participate in a complaint.

The proposal also includes expanding the “complaint request” authority currently granted to a limited group of officials—including the Prosecutor General, the Auditor General, the Minister of SMEs and Startups, and the head of the Public Procurement Service—to a broader set of institutions. This would encompass 50 central government agencies, 17 metropolitan governments, and 226 local governments.

Under existing rules, once the KFTC receives a complaint request from another government body, it is required to file a formal complaint with prosecutors.

The proposed changes reflect growing concerns that the KFTC’s exclusive authority could be misused as a discretionary tool, potentially limiting accountability in enforcing fair trade laws.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]