Exclusive: Fair Trade chief considers criminal charges for companies that refuse large-retailer investigations

Fair Trade Commission Chairman Joo Byung-kee says South Korea may change the law after Coupang refused to cooperate fully with an investigation into alleged violations of the Large Retail Business Act.

In an interview with Hankyoreh on Sept. 3, Joo said the commission would seek legal and institutional changes to prevent similar cases. “We are reviewing the introduction of criminal penalties for refusing investigations under the Large Retail Business Act,” he said. The commission will proceed with the administrative fine currently available against Coupang, he added.

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We are reviewing the introduction of criminal penalties for refusing investigations under the Large Retail Business Act.

The current framework treats investigation refusals differently depending on the law involved. Refusing an investigation into alleged violations of the Fair Trade Act can lead to criminal charges, punishable by up to three years in prison or a fine of up to 200 million won. The Large Retail Business Act has no comparable criminal provision, leaving regulators able to impose only a fine of up to 200 million won.

Joo also discussed a separate legislative proposal to impose a penalty of up to 1% of a company’s annual revenue when it refuses an investigation under laws overseen by the commission. “If a company can pay a fine of about 200 million won for refusing an investigation and avoid a penalty of several hundred billion won, why would it not do so?” he said. Joo argued that stronger investigative powers are necessary.

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If a company can pay a fine of about 200 million won for refusing an investigation and avoid a penalty of several hundred billion won, why would it not do so?