FTC to fine conglomerate heads for omitting affiliates from regulatory filings

South Korea's Fair Trade Commission (FTC) announced plans to impose fines on conglomerate leaders for failing to include affiliates in regulatory filings, with penalties up to 10 percent of the larger of combined assets or average annual sales of omitted affiliates. This move follows the Fair Trade Act's current limitation of two-year imprisonment or a fine of 150 million won (US$104,000) for false filings, which the FTC believes is insufficient to deter violations.

The agency also aims to combat price rigging by focusing investigations on the chemical, paint, and petrochemical industries, establishing dedicated teams for major cases. The FTC plans to revise the Fair Trade Act to address recurring price-rigging activities, including revoking business registrations or suspending operations for repeat offenders.

Additionally, the agency seeks to extend the statute of limitations for cartel violations from 12 to 15 years.