FTC chief seeks measures to prevent firms from dodging probes

The head of South Korea's antitrust watchdog, Ju Biung-ghi, announced on Monday that his agency plans to explore methods to deter companies from evading investigations through court injunctions. This comes in the wake of stalled probes into e-commerce giant Coupang Inc. and Hanwha Group. Ju expressed regret over a court granting Coupang and Hanwha's requests to halt FTC's on-site inspections and document submission orders, which are typically conducted with the parties' consent and follow a distinct procedure from police or prosecutor actions.

The FTC's on-site inspections are crucial for safeguarding small business owners dealing with Coupang, as the company was accused of passing on discount costs to its suppliers without prior notice, in violation of the Framework Act on Administrative Investigations. The FTC is also investigating Hanwha over alleged intragroup transaction violations, with a local court temporarily suspending the investigation until September 23 and another over documents submission until January 31 next year.

Ju pledged to review FTC's internal rules and regulations to close loopholes that enable companies to circumvent investigations. He also vowed to continue efforts to tackle unfair practices and price fixing until the end of 2026, potentially restricting market participation for businesses repeatedly engaged in price fixing. The FTC will review competition in the defense industry and assess market dominance by certain suppliers of defense materials, potentially revising their designation as defense items.