(LEAD) FTC head vows stern action against unfair practices burdening people

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By Kang Yoon-seung

SEOUL, Oct. 12 (Yonhap) -- The head of South Korea's antitrust watchdog said Monday his agency will take stern action against unfair market practices, such as price fixing, that add to people's financial burdens.

Ju Biung-ghi, head of the Fair Trade Commission (FTC), made the remarks during a parliamentary audit at the National Assembly, noting the watchdog will work to revamp policies to root out such abuses.

"To fundamentally address deep-rooted price fixing in the market, the FTC will develop more effective policy measures, such as revoking the registrations of businesses repeatedly engaging in price fixing, seeking business suspensions or ordering companies to reset their prices," Ju said.

The chairperson added the commission will proactively address unfair practices in sectors closely linked to people's daily lives, including the wedding, leisure and funeral industries.

Ju said the FTC's policy goals include giving vulnerable groups, including small businesses and the self-employed, a stronger voice.

"To ease the imbalance of power among market players, we aim to establish an environment where they can compete fairly and receive fair compensation," Ju said.

The FTC head said U.S.-listed e-commerce giant Coupang must fulfill its social responsibilities in line with its growth.

"It is true that Coupang's sales have grown sharply recently and that the company has delivered corresponding benefits to consumers," Ju said. "In the process, it needs to refrain from seeking unfair profits."

Ju said the country's current fines for price fixing are "not excessive," responding to an opposition lawmaker's claim that fines for collusion worldwide totaled US$3.3 billion last year, while South Korea had already imposed $1.3 billion in fines through September this year.

"Collusion has not declined because the fines are insufficient compared with the illicit gains from such practices," Ju said.

The FTC will closely monitor abuses of power by platform operators, including online marketplaces, and delivery and accommodation apps, while thoroughly reviewing their mergers to ensure fair competition.

Touching on conglomerates, Ju said the FTC will work to reduce the country's economic dependence on major business groups, while proactively monitoring any unfair practices.

"The FTC will take stern action against abuses by powerful market players so businesses can focus on their operations and technological innovation," Ju said.

colin@yna.co.kr
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