The Fair Trade Commission’s headquarters [FTC]
The Fair Trade Commission’s (FTC) exclusive right to file criminal complaints, a system maintained for 46 years since the Monopoly Regulation and Fair Trade Act was enacted in 1980, now stands at a crossroads. Under this framework, prosecutors may bring charges for violations of certain laws overseen by the commission, including the act and subcontracting regulations, only when the commission first files a complaint. The system was designed to ensure that economic activity would not be subject to indiscriminate criminal punishment.
Criticism has persisted that the commission has not exercised this authority actively enough. In response, reforms were introduced. In 1996, the Prosecutor General was given the authority to request complaints. In 2014, that authority was expanded to include the Board of Audit and Inspection, the Public Procurement Service and the Ministry of SMEs and Startups. The FTC is now obligated to comply with such requests, meaning that its once exclusive authority has already been significantly weakened in practice.
President Lee Jae Myung recently called for the abolition of the system during a Cabinet meeting. He argued that granting the FTC monopoly power over complaints also gives it the ability to suppress cases. He further proposed extending complaint authority to local governments. In response, the commission reported a plan to expand complaint request authority to 50 central government agencies, 17 metropolitan governments and 226 local governments. It also proposed allowing groups of citizens and businesses, such as 300 individuals or 30 companies, to file complaints.
However, concerns were raised by other Cabinet members. Minister of Trade, Industry and Energy Kim Jung-kwan warned that such changes could lead to duplicate investigations and increased burdens on companies. Justice Minister Jung Sung-ho also raised concerns about potential abuse of prosecutorial and complaint powers. It is notable that even the Justice Ministry, which has long opposed the exclusive complaint system, expressed concerns about excessive litigation.
The exclusive complaint system was introduced to prevent economic actors from being overly exposed to criminal sanctions. The Constitutional Court recognized its legitimacy in 1995 on that basis. As former vice chair of the commission Ji Cheol-ho explained in “The Ordeal of Exclusive Complaint Authority,” excessive enforcement may discourage economic activity, much like a referee who calls minor fouls too strictly can disrupt a game and limit players’ performance.
Given the potential economic side effects, the issue requires careful and sufficient deliberation. The president’s strong push for abolition should not impede open debate or broader public discussion. Decisions of this magnitude must balance fairness in enforcement with stability in economic activity to avoid unintended harm to businesses and the market.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
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