Joo Byeong-ki, the nominee for Chair of the Fair Trade Commission, stated that regulations are necessary regarding circular investment through overseas affiliates in connection with the Korea Zinc situation.
In a written response submitted to the National Policy Committee on the 4th, Joo noted, "Illegal mutual and circular investment through overseas affiliates contradicts the purpose of the Fair Trade Act to prevent economic concentration," and expressed agreement on the need for regulation.
Earlier, Young Poong and MBK Partners reported to the Fair Trade Commission at the end of January that Choi Yoon-beom, the chairman of Korea Zinc, created a mutual investment using Sun Metal Corporation (SMC), a subsidiary in Australia. While mutual investments between domestic affiliates are prohibited under the current Fair Trade Act, there has been criticism that the lack of regulations on overseas affiliates has exploited a systemic loophole.
Regarding the potential exception to the Fair Trade Act in the process of restructuring the petrochemical industry, Joo stated, "To minimize side effects such as price increases resulting from monopolies, the role of the Fair Trade Commission is crucial; therefore, if I am appointed, I will closely review individual bills." He added that it is necessary to quickly resolve uncertainty for corporations by expediting the review of corporate merger notifications and support rapid business restructuring.
In response to concerns about discriminatory application of platform law to American corporations, he said, "We will apply the same legal principles and standards without discrimination based on nationality," and added that he will strengthen communication with the U.S. side to minimize trade friction. Regarding the issues with delivery app commissions, he noted that "institutional measures need to be established," suggesting plans for coexistence and enhanced transaction transparency.
Concerning the issue of granting franchise and agency owners the right to organize, he expressed that he "actively agrees," showing a positive stance. This differs from the previous administration's negative stance, which expressed concerns about potential harm to the industry. Joo commented that "enhancing negotiation power will be the cornerstone of establishing fair trade order," but emphasized the need for differentiation considering the characteristics of each transaction.
Meanwhile, it was revealed that Joo failed to pay comprehensive income taxes totaling 12.46 million won, as well as property taxes and automobile fines, from 2018 to 2020 and from 2023 to 2024. He explained that this occurred due to missing payment deadlines because of a busy schedule or being inexperienced in tax filing, adding, "I have now settled all payments and feel regretful about it."
The National Policy Committee will hold a confirmation hearing for Joo on the 5th to verify his policy direction and moral integrity.