[Reporter's Notebook] FTC's costly crackdown on conglomerates generates little return

The Fair Trade Commission (FTC) in South Korea has been cracking down on conglomerates with increasing vigor, but the efforts appear to be yielding little tangible benefit. In fact, the regulator has been forced to refund billions of won in fines that have been overturned by courts. Since 2022, the FTC has returned nearly 290 billion won ($216.7 million) to companies as a result of administrative court rulings invalidating its sanctions.

These figures raise questions about the effectiveness of the regulator's tougher enforcement measures, as they may merely be creating additional legal and financial burdens for businesses and taxpayers alike. The FTC's latest return of fines and associated payments for the first nine months of the current year amounts to 23 billion won, with 99.7 percent of that amount stemming from sanctions that were overturned in whole or in part through administrative litigation, according to data shared with Rep. Choi Eun-seok of the main opposition People Power Party.

However, the regulatory landscape is evolving. Since President Lee Jae Myung assumed office last year, the government has been pushing to strengthen enforcement mechanisms further.