This article was published on March 13, 2025, at 3:20 p.m. on the ChosunBiz RM Report site.
The Fair Trade Commission recently appointed Professor Kim Sang-hyun of Yonsei University as the Director of Economic Analysis. This marks the first time the Fair Trade Commission has recruited an incumbent university professor to a director-level position. With the increasing use of economic analysis as key evidence in recent Fair Trade Commission cases, expectations are growing that Kim's addition will further strengthen the economic analysis capabilities of the Fair Trade Commission.
The Fair Trade Commission's Economic Analysis Division plays a critical role in determining whether competition is restricted in the market. The merger reviews, which assess whether mergers between corporations hinder competition, as well as collusion and abuse of market dominance cases, increasingly rely on economic evidence.
In the past, the Fair Trade Commission's reviews often revolved around legal interpretations and documentary evidence, but recently, economic analysis has established itself as a major form of evidence, leading to economic debates becoming core issues in the case deliberation process.
Professor Kim joined the Fair Trade Commission immediately after receiving tenure at the university. Tenure is a system that guarantees permanent professorship at an academic institution, which enhances research independence and job stability.
Professor Kim obtained a Ph.D. in economics from the University of Michigan in 2013. He has since served as a professor at the University of East Anglia in the United Kingdom and Yonsei University, researching industrial organization and behavioral economics.
He has consistently conducted research and provided consultations in the field of fair trade. Topics such as ''advertising revenue and pricing strategies in two-sided markets (platforms)'', ''analyzing the competitive effects of tie-in sales between corporations'', and ''the impact of advertisement bundling sales by intermediary platforms on market competition'' are among his main research subjects. In particular, his research analyzing the pricing strategies and competitive structures of corporations in platform markets is closely aligned with cases currently being handled by the Fair Trade Commission.
These research outcomes have also been reflected in the practical work of the Fair Trade Commission. Professor Kim has previously served as an economic analysis consultant for projects such as the Fair Trade Commission's ''Cloud Industry Market Research'' and ''Economic Analysis of Advertising Bundling Sales in Online Platforms'', participating in the policy-making process.
From the Fair Trade Commission's perspective, recruiting a tenured economist to a director-level position is no easy task. This is because, as professors accumulate experience, it is often not commensurate with their rank, and there are practical constraints that require them to work in Sejong.
Nonetheless, Professor Kim's decision to join the Fair Trade Commission stems from his belief that it presents an opportunity to integrate his research experience into policy practice. He noted, ''I felt that being only in academia might diminish my sense of reality, and since this is an area where I actually research and teach, I wanted to understand how it functions in reality.''
The field of industrial organization he studies is closely connected to cases handled by the Fair Trade Commission. Industrial organization is an academic discipline that analyzes the effects of competition between corporations, market structure, and policies on the economy, serving as a crucial analytical tool in merger reviews and abuse of market dominance cases.
In merger cases, the process of analyzing how much market competition is restricted when two corporations merge requires economic models and quantitative analysis. In abuse of market dominance cases, an economic approach is necessary to demonstrate how the methods used by businesses to restrict competition impact consumer welfare.
As companies involved in the cases increasingly utilize economic models to refute claims, the Fair Trade Commission is also facing a growing need to enhance its analytical capacity. Recently, economic analysis played a significant role in cases handled by the Fair Trade Commission, including allegations of collusion for sales incentives among the three mobile carriers, Olive Young's ''abuse of market dominance'', Coupang's ''algorithm manipulation'', and collusion over ''LTV information exchange'' among the four major commercial banks.
The Fair Trade Commission's recruitment of an external Director of Economic Analysis marks the third occurrence. The first was Dr. Cho Sung-ik from the Korea Development Institute (KDI), followed by Dr. Lee Hwa-ryeong, also from KDI. Since 2020, the Fair Trade Commission has utilized the ''Government Recruitment Support'' program of the Personnel Innovation Ministry to convert the Director of Economic Analysis into an externally open position. This measure was taken to address the structural limits of relying solely on existing personnel in the Fair Trade Commission as the number of cases requiring economic analysis increases.
There have been instances in other government ministries where incumbent university professors were appointed to director- or division-level positions. The Korea Disease Control and Prevention Agency has previously appointed an incumbent professor to a director-level position, and the Ministry of Land, Infrastructure and Transport and the Ministry of Culture, Sports and Tourism have also recruited individuals from academia to Director General positions.
However, it is the first time the Fair Trade Commission has directly recruited an incumbent university professor. This is interpreted as a reflection of the Fair Trade Commission's willingness to strengthen its capabilities for more precise assessments of competitive restrictions and economic proof in a context where the role of economic analysis is increasingly expanding. In particular, the Fair Trade Commission expects that this will also contribute to reducing losses in court.
A Fair Trade Commission official noted, ''With Professor Kim's addition, the economic analysis functions of the Fair Trade Commission will be further strengthened,'' adding, ''Many expect how Professor Kim will integrate his research experience from academia into practice and whether he can elevate the level of economic analysis at the Fair Trade Commission.'