South Korea’s corporate watchdog chief said Monday that the revision to the fair trade law is very important for the impartial implementation of the country’s antitrust rules.
“The revision is very important in that it would determine the implementation of the country’s competition law,” Kim Sang-jo, the chief of the Fair Trade Commission, said in a forum.
The FTC chief, however, said it would be very tough for the revision to be ratified by the parliament as there are still huge differences of opinions.
In August, the FTC proposed the revision of the fair trade law, which will increase the number of conglomerate subsidiaries subject to inter-affiliate trading regulations by threefold.
The revision to the law also bans inter-affiliate trading within a business group whose founding family members hold over 20 percent stakes in both listed and unlisted companies, and over 50 percent in their affiliates.
Under the proposal, the corporate watchdog will surrender its own right to file complaints in major cases, such as over price-rigging, in a move to support effective law enforcement and better protect consumers’ rights.
For the last 38 years, the FTC has been the only entity that can bring antitrust trade cases to court through the state prosecutors’ office. This is aimed at preventing a flood of lawsuits from being filed against firms by individuals and civic groups, which the business community claims could disrupt their normal operations.
The National Assembly is set to review the revision proposal next month during its regular session. (Yonhap)