President Lee Jae-myung directed the Fair Trade Commission to increase its personnel shortly after his inauguration, drawing attention to how much the role of the Fair Trade Commission will expand. This could serve as the first clue to gauge how the 'fair economy' framework emphasized by President Lee during his candidacy will be realized in actual government operations.
According to a report by ChosunBiz on the 8th, the Fair Trade Commission has begun reviewing follow-up measures in response to President Lee Jae-myung's mention of the need for increased personnel on the 5th. During his first Cabinet meeting on the 4th, President Lee said, "We need to bolster the Fair Trade Commission's personnel," and instructed, "Prepare specific measures."
It is unusual for a president to publicly mention organizational enhancement for a specific department just two days after taking office. A source from a law firm with ties to the Fair Trade Commission noted, "When the president gives direction, it’s hard for the Ministry of the Interior and Safety or the Ministry of Economy and Finance to oppose organizational expansion," adding, "It’s rare to pinpoint 'organization' itself, rather than the work. There is also a possibility that a person in close communication with the Fair Trade Commission may be a candidate for the next commission chair."
The president's directive is interpreted as a willingness to position the Fair Trade Commission as a central axis of market surveillance, beyond merely resolving the backlog of cases. In fact, he promised to realize a 'fair market order' through strengthening platform regulation, monitoring chaebols, and protecting small and medium-sized enterprises in his presidential campaign. The establishment of the Fair Trade Act for online platforms, caps on brokerage fees, and guarantees of collective bargaining rights for listed companies are all extensions of this framework.
In particular, the Fair Trade Act for online platforms is highlighted as a key legislative task to enhance platform regulations. It is expected to include measures such as prohibiting discriminatory fees and ensuring negotiation rights, aimed at preventing the abuse of market dominance by large platform operators in delivery apps, mobility, and e-commerce. The Fair Trade Commission has already begun investigations into alleged bundling of YouTube Premium and Music, as well as the fee structures of delivery apps, thereby expanding its surveillance capabilities.
Amid these developments, there are observations that a restructuring of the Fair Trade Commission may occur simultaneously. Discussions may arise regarding the establishment of a dedicated organization for online platforms or the expansion of personnel within the existing Corporate Groups Division. With over 1,000 cases submitted annually, delays in processing these cases directly affect the credibility of competition authorities. In fact, the average processing time for Fair Trade Commission cases over the past five years has reached 524 days.
The Fair Trade Commission is expected to expand its influence again under the Democratic Party of Korea government, succeeding the Moon Jae-in administration. Former President Moon pushed for a fair economy and chaebol reform with the then chairman of the Fair Trade Commission, Kim Sang-jo. President Lee also established 'Fair Nation' as the first-ever organizational initiative while serving as the governor of Gyeonggi Province, making fair issues a core task of his administration. At that time, he directly addressed unfair practices by platform companies like Baedal Minjok, Kakao Mobility, and Coupang, and there was a precedent where he requested the Fair Trade Commission to disallow corporate mergers during Delivery Hero's acquisition of Baedal Minjok.
Based on this experience, there are calls within the Fair Trade Commission to establish an additional organization to specialize in traditional 'gap-eul transactions' involving franchises, subcontracting, and distribution, aside from the establishment of the online platform division. Currently, related tasks are partially placed under the Corporate Merger Review Division, making it difficult to secure dedicated functions, a concern that has been consistently raised.
The issue of transferring authority to local governments is also expected to resurface. President Lee previously argued that the primary investigation authority for cases such as franchise, distribution, and bidding collusion should be transferred to local governments during his tenure as governor. Future discussions on administrative transfers may reignite politically.
Expanding exceptions to the Fair Trade Act is also one of the major pledges. President Lee stated that he would exclude joint projects of small and medium-sized enterprise cooperatives from collusion under the Fair Trade Act and promote the institutionalization of collective bargaining rights centered around the Korea Federation of Small and Medium Enterprises (KBIZ). This approach aims to move away from traditional market policies based on competition, recognizing the solidarity among small and medium-sized enterprises as 'co-prosperity.' It signifies a shift in competition policy by institutionalizing the exception for joint actions by cooperatives that was discussed during the Moon Jae-in administration.
Changes are also expected in the area of chaebol regulations. Just as the Corporate Groups Division was established under the 'chaebol reform' framework during the Moon Jae-in administration, President Lee has also expressed a commitment to closely examine the structural expansion of profit extraction and dominance by the families of large corporations. He has particularly emphasized a firm stance against large corporations' 'violations' such as internal transactions in order to protect small and medium-sized enterprises and small business owners since his candidacy.
The Fair Trade Commission has detected unfair internal transactions by large corporations in the restaurant, real estate, and construction sectors and has cracked down on practices of favoritism toward families of business leaders. It is currently investigating allegations of unfair support involving major groups like CJ, Lotte, and HDC. Depending on the policy direction of President Lee, it is anticipated that the policy priority for handling cases involving large corporate groups will also increase.
Lee Hwang, a professor at the Korea University Law School, noted, "The content of the online platform fair trade law included in the president's pledge could become a litmus test for future fair economy policies," adding, "The direction of pursuing both fairness and growth is highly desirable."