FTC Chief Vows to Replace Criminal Penalties with Economic Sanctions

Government regulators and the Korea Chamber of Commerce and Industry (KCCI) met to discuss ways to overcome the low-growth phase and establish a fair market order.

FTC Chairman Joo Byung-ki responded positively when the business community proposed improvements to the criminal penalty system under the Fair Trade Act, saying he would convert broadly applied criminal penalties to economic sanctions.

Chairman Joo held a meeting with 19 KCCI board members including Chairman Chey Tae-won at the KCCI headquarters in Jung-gu, Seoul on Friday. "We plan to guarantee business executives' freedom in management activities by converting criminal penalties broadly introduced in fair trade-related laws to economic sanctions," Joo said.

"Criminal penalties should be applied cautiously as a last resort," Joo added, announcing plans to shift from penalty-centered regulation to economic sanction-centered regulation.

During the meeting, the KCCI board proposed fair trade issues including improvements to criminal penalties under the Fair Trade Act, expansion of incentives for voluntary compliance programs, elimination of redundant disclosures between the Fair Trade Act and other laws, and resolution of discriminatory regulations between online and offline businesses under the Large-Scale Retail Business Act.

"The global competitive landscape has completely changed, and concerns about prolonged low growth are mounting. Many worry whether we can overcome this trend using past methods," Chairman Chey said. "I hope today's meeting will produce solutions that can achieve both innovation and fairness."

The FTC pledged to serve as a catalyst to boost investment in advanced strategic industries in response to rapidly changing conditions including energy and digital transformation and uncertainties in the trade order. The commission plans to thoroughly review the business community's proposals raised at this meeting and actively reflect them in policies aimed at creating a fair market environment and enhancing corporate vitality.