Fair Trade Commission Chairperson Joo Byung-ki stated that he finds it "very regrettable" that courts have recently accepted applications to suspend the execution of the FTC's on-site inspections filed respectively by Coupang and Hanwha.

Speaking at a press conference celebrating his first anniversary in office held at the Government Complex-Sejong, Chairperson Joo made the remarks regarding the Seoul High Court's decisions to grant Coupang's application for a stay of execution against the on-site investigation and Hanwha's application for a stay of execution against the order to submit materials.

Commenting on the High Court's similar decision to grant a stay of execution for the price re-determination orders issued to paper manufacturing and flour milling companies, he remarked, "It is very regrettable that we have lost the opportunity to periodically evaluate price re-determinations and whether competition has been restored."

It is unusual for the head of the FTC to publicly express regret over a decision by the judiciary.

Controversy is also expected as the head of the FTC, who essentially functions as a court of first instance, has outwardly criticized the ruling of the High Court, a higher appellate court.

Chairperson Joo emphasized, "The FTC's on-site investigations are conducted with the consent of the investigated party, and are completely different from the criminal search and seizure methods used by the police and prosecutors," adding, "On-site investigations do not prevent companies from doing business or halt their production activities."

He continued, "Most laws related to the FTC serve as the last bastion for economically vulnerable groups, and the Large-Scale Retail Business Act (against which Coupang protested, thwarting the on-site investigation) is the last bastion protecting the rights and interests of small merchants." He explained that due to the High Court's decision, "(the Coupang investigation) has been delayed by about 30 days, and the practical effectiveness of our investigation has been neutralized."

"If the FTC's investigations cannot be carried out in practice, there is no way to protect the rights and interests of small merchants," Chairperson Joo raised his voice, adding, "When determining whether a company's right to defense has been infringed upon due to an investigation, we must compare it with what public rights and interests are protected by law."

Maintaining a similar stance on the price re-determination orders, he said, "Honestly, I very much doubt what kind of irreparable infringement has been caused (to the companies)," while noting, "On the other hand, irreparable infringement could occur for consumers as a whole if the price re-determination orders cannot be carried out."

Chairperson Joo mentioned institutional adjustments, stating, "We plan to review our internal rules related to FTC investigations once more and look into revisions that will clearly eliminate any room for companies to evade investigations."


However, he drew the line by stating that it is not yet time to consider introducing compulsory investigation powers.

"Most investigations are conducted smoothly with good cooperation," Chairperson Joo said, adding, "Because of just two cases (Coupang and Hanwha), we are not in a situation where we need to seriously consider introducing Special Judicial Police Officers, which we have not adopted until now."

Amid claims from the U.S. side that the FTC is discriminating against American companies such as Coupang, Chairperson Joo, who visited the United States last week, explained, "I held bilateral talks with U.S. competition authorities, but the discussions centered more on bilateral pending issues and the direction of antitrust enforcement rather than individual cases."

Regarding speculations that a push by the U.S. House Judiciary Committee chairman to revise laws allowing the denial of entry to foreign public officials who discriminate against American companies might be targeting him, Joo noted, "Rather than responding directly, we will convey our opinions through the Ministry of Foreign Affairs if necessary."

Refuting the claim of "Coupang discrimination," Chairperson Joo said, "As an IT powerhouse, South Korea has had no choice but to enforce laws most aggressively against foreign companies," and added, "There has never been a single instance in the past 25 years where the discrimination or unfairness of our law enforcement was raised as an issue."

Previously, the FTC found that Coupang submitted a written pledge stating that "relatives do not participate in management," yet Kim Yu-seok, the younger brother of Coupang Inc. Chairman Kim Bom-suk, actually participated in Coupang's management.

Chairperson Joo stated, "We will quickly verify (whether Coupang submitted false materials), wrap up the investigation, and take stern measures."

Regarding criticisms that paper and egg prices continue to rise even after the FTC's sanctions against printing paper collusion and the detection of price-fixing activities by the Korea Federation of Laying Hens, which the agency touted as achievements this year, Joo said, "The paper industry is a struggling sector due to continuously rising raw material costs and decreasing demand, and there is nothing we can do about the price increases resulting from that."

Chairperson Joo added, "(In the case of eggs), since producers' benchmark prices have disappeared, we are consulting with the Ministry of Agriculture, Food and Rural Affairs on this issue."

He emphasized the reason for trying to introduce structural measures—such as ordering divestments to resolve serious and structural competition-restricting issues—stating, "To drastically eradicate repeat collusion, it is necessary to introduce high-intensity systems that completely strip away the expected profits derived from collusion."

"One such measure is a system that substantially restricts market participation, such as revoking registrations and licenses or suspending business operations for repeat colluders," he said, adding, "We are currently holding consultations with related ministries focusing on about 20 industry sectors, including the Fire Facilities Construction Act in the safety sector, the Wastes Control Act in the environmental sector, and the Passenger Transport Service Act in the transportation sector."

Refuting arguments that structural measures infringe upon property rights, he stated, "In the case of business transfers, property rights can be maintained because the business is sold by converting the present value of future cash flows generated by that business into money."

He added, "Advanced competition authorities around the world have secured this as a tool of law enforcement for a long time, and it has never been an issue."

Expressing his view on delivery app commissions, he stated, "I believe the burden on entering merchants, including advertising fees, is excessive, and the overall burden needs to come down," adding, "Regulatory authorities can play a role regarding excessive prices."
 

(Photo: Yonhap News)