Korea Antitrust Chief Seeks Revenue-Based Penalties for Investigation Obstruction

South Korea’s antitrust chief has called for substantially stronger financial penalties against companies that obstruct regulatory investigations, arguing that modest administrative fines do not provide an effective deterrent.

Fair Trade Commission Chair Joo Byung-ki said a company that refuses to cooperate with an investigation could face a fine equal to 1 percent of its total revenue under the approach he supports. He said the change would reinforce the commission’s investigative authority and improve the effectiveness of enforcement.

Joo made the proposal during an interview with public broadcaster KBS on Sunday. He said the FTC’s existing power to investigate was generally sufficient, but the consequences for refusing to cooperate remained too weak in some areas of competition law. His comments focused on the difference between having legal authority to conduct a probe and having practical tools to compel compliance.

The enforcement gap varies among laws overseen by the commission. Some statutes allow financial penalties and criminal sanctions when a company interferes with an investigation. The Act on Fair Transactions in Large Retail Business, however, currently provides only administrative fines for such conduct. Joo argued that the law should be revised to permit heavier financial penalties and enforcement fines.

The issue drew attention after an FTC on-site investigation involving e-commerce company Coupang was blocked in August. Coupang later asked a court to suspend the probe, but the court rejected that request in September. The company appealed the decision. The dispute highlighted the limits regulators can face when a business challenges or does not cooperate with an attempted inspection.

A penalty based on total revenue would represent a significant shift from a fixed or relatively limited administrative fine. It could make noncooperation more costly for large companies and reduce the incentive to delay an investigation. At the same time, implementing the proposal would require legislative changes and would likely prompt debate over proportionality, procedural safeguards and how revenue should be calculated.

Joo’s remarks do not themselves change the law, and no timetable for a revision was announced. They nevertheless signal that the FTC leadership wants obstruction penalties to become a more central part of South Korea’s competition enforcement framework, particularly in cases involving large retailers and online platforms. Any formal amendment would need to move through the legislative process before the commission could impose the stronger sanctions described by Joo.