The Fair Trade Commission is essentially in a state of dormancy these days.
A source from the Fair Trade Commission recently noted the internal atmosphere of the agency. Chairperson Han Gi-jeong's term is set to end on the 15th of next month, but there has still been no news regarding his successor. While most government ministries have appointed new ministers and are accelerating the implementation of national tasks, the Fair Trade Commission appears to be lagging behind.
This is a sight that could not have been anticipated right after the new government took office. President Lee Jae-myung on June 5, just two days after his inauguration, presided over his first cabinet meeting, where he instructed that 'the Fair Trade Commission needs more personnel' and should prepare specific measures. Given that the President directly mentioned the Fair Trade Commission, there were predictions that its role would expand and its organizational status would be elevated in the new government. It was also expected that the appointment of a new chairperson to lead this initiative would be expedited. However, two months after the new government's launch, there has been no news regarding the selection of a chairperson.
The vacancy in the chairperson's position is leading to a loss of momentum in the Fair Trade Commission's operations. Internally, there are remarks that 'we do not know what vision and direction the next leader will hold, so even the review of key issues is not progressing.' Depending on who becomes the chairperson, the policy priorities may change, leading to behaviors of postponing major policy-related decisions while monitoring the situation. Following Chairperson Han Gi-jeong's departure at the end of his term, if the Vice Chair takes the lead in the organization, this situation is expected to worsen.
Major tasks assigned to the Fair Trade Commission, such as the establishment of a regional office in Gyeongin, a dedicated department for the Gap-Eul issue, the establishment of a platform department, and an increase in investigation personnel, have not made any substantial progress thus far. Observers suggest it is realistically difficult for the chairperson with just a month left in office to solve these tasks independently.
One of the major issues facing the Fair Trade Commission is the legislative process for the Online Platform Fairness Act (On-Platform Act). The establishment of the On-Platform Act is one of President Lee Jae-myung's key campaign pledges. Although this legislation aims to curb the abuse of power by large platform corporations, the actual momentum for its advancement has weakened compared to the beginning of the administration.
Recently, it has been reported that the United States has expressed strong concerns about the legislative movements regarding the On-Platform Act during the Korea-U.S. tariff negotiations. The reason is that it could infringe upon the interests of its big tech companies. In response, the government has begun to adjust the intensity of platform regulation, and the National Policy Committee has also postponed discussions on this matter until after the Korea-U.S. summit. National Policy Committee member Kang Jun-hyun explained, 'Since this is a law that is of great interest to the U.S., we need to approach it with caution.' In such a complicated situation entangled with trade issues and political judgment, the chairperson of the Fair Trade Commission must directly coordinate the government's position and policy direction to maintain stability.
The Fair Trade Commission's role is also needed in the discussion process of the 'rationalization of economic punishment,' which will be a key economic policy of the Lee Jae-myung government. In the discussion about converting criminal punishment into economic penalties like fines or penalty surcharges, the Fair Trade Commission's method of punishment can serve as a model.
Currently, the Fair Trade Commission is also experiencing delays in internal appointments. Recently, Vice Chair Nam Dong-il was promoted internally to the position of Standing Commissioner, leaving a vacancy for one standing commissioner. However, no successor has been appointed, leading to delays in appointments at the Director General and Director level as well.
The vacancy of the standing commissioner also affects case handling. The Fair Trade Commission has a structure where three standing commissioners preside over 'sub meetings' to share the burden of case reviews. If one is absent, there will inevitably be disruptions to the pace of case resolutions. In particular, since Vice Chair Nam was mainly responsible for policy rather than specific case areas, the burden within the organization following his vacancy is expected to be more significant.
Typically, the appointment of the Fair Trade Commission chairperson has been completed within a month of a new government taking office. The Moon Jae-in administration appointed former chairperson Kim Sang-jo just a week after taking office. The Yoon Suk-yeol administration also struggled with the appointment of the Fair Trade Commission chairperson. After 55 days of government establishment, Professor Song Ok-ryul of Seoul National University was appointed, but Song's candidacy fell through due to past sexual harassment controversy. The current chairperson, Han Gi-jeong, was appointed afterward.
Sixty-five days after its establishment, the Lee Jae-myung government has still not appointed the next chairperson. This is the longest delay among past administrations.
It appears that Han Gi-jeong will be the fourth chairperson to complete his term since the Fair Trade Commission was elevated to a ministerial-level agency in 1996. Until now, only three commissioners have completed their three-year terms: former chairperson Jeon Yun-cheol appointed during the Kim Dae-jung administration, former chairperson Kang Cheol-kyu appointed during the Roh Moo-hyun administration, and former chairperson Jo Sung-wook appointed during the Moon Jae-in administration.
As the appointment vacancy prolongs, various speculations about potential chairperson candidates are also rampant. Names like Professor Joo Byeong-gi from Seoul National University, Professor Lee Jung-hee from Chung-Ang University, and former Vice Chair Ji Cheol-ho are being mentioned, but no progress has been made so far. Some speculate that 'there may have been issues in the verification process.'
The Fair Trade Commission remains a key agency for maintaining fair competition among corporations. President Lee Jae-myung is likely not overlooking the role of competition authorities. The selection of the next chairperson will be the first step for the Fair Trade Commission to fulfill its role.