2 days ago
FTC prepares to expand as Lee vows crackdown on unfair corporate practices
New administration aims to tighten oversight of platform giants, chaebol groups accused of unfair market dominance
President Lee Jae-myung's recent call to strengthen the Fair Trade Commission is expected to accelerate regulatory scrutiny of unfair practices by major platform operators and conglomerates, particularly those impacting small and medium-sized enterprises.
The antitrust regulator has begun internal discussions to identify areas where personnel reinforcements are most needed, according to industry sources on Wednesday. The move follows President Lee's first Cabinet meeting last week, where he highlighted the need to expand the agency's workforce as part of the administration's broader government restructuring agenda.
As of the end of 2023, the FTC's civil servant headcount stood at 650 -- ranking 19th out of 27 agencies under the Prime Minister's Office. That figure is equivalent to roughly 60 percent of the 1,109 employees at the Ministry of Economy and Finance.
'In line with the president's directive, we are currently identifying which divisions require additional staffing and to what extent,' an FTC official said. 'The process will take time due to the need for statistical analysis and internal assessments.'
Observers within and outside the government speculate that President Lee is particularly focused on expediting investigations into platform-related abuses. During his campaign, he pledged to bolster protections for platform-affiliated merchants and to reinforce the social and economic accountability of tech giants.
The administration is also expected to revive legislative discussions about the proposed 'Online Platform Fairness Act,' which aims to establish legal frameworks for regulating online marketplaces. Sources close to the matter suggest that it could lead to the creation of a dedicated 'online platform bureau' within the FTC to centralize related cases and policymaking.
Lee Jung-hee, a professor at the School of Economics at Chung-Ang University and a former non-standing commissioner of the FTC, expressed support for the new administration's policy direction but emphasized that stronger enforcement capabilities are needed for the antitrust regulator to gain momentum.
'I believe the policy measures announced by the new government are promising,' Lee said. 'However, investigations should not be limited to filed complaints. Without sufficient personnel, such efforts could diminish, weakening the agency's responsiveness.'
Highlighting the growing significance of digital platforms, Lee proposed the creation of a dedicated division within the FTC. 'As platform-related cases are rapidly increasing, it's time to establish a specialized platform bureau similar to the business group monitoring bureau that was introduced under the Moon Jae-in administration,' he said.
At the same time, enforcement actions by the FTC's business group monitoring bureau -- launched under the Moon Jae-in administration to pursue chaebol reform -- are expected to gain momentum.
President Lee has consistently advocated for stricter oversight of intra-group transactions and abuse of market dominance by conglomerate owners, particularly where such behavior disadvantages small-scale market participants.
The FTC is currently investigating allegations involving major platform firms such as Baemin and Coupang Eats over their preferential treatment requirements, as well as Coupang's delayed merchant settlements. Among large business groups, CJ, HDC Hyundai Development and Lotte are undergoing probes for suspected unfair internal support schemes.
Lee Hwang, dean of the Korea University School of Law, said the eventual content of the Online Platform Fairness Act will serve as a litmus test for the administration's fair economy agenda.
'The president's intent to simultaneously promote fairness and growth through market autonomy is clear,' he said. 'To that end, the FTC will inevitably need to play a more prominent role and its influence over the economy's fairness is likely to expand significantly.'
