Controversy is brewing over the Korea Fair Trade Commission recently releasing the "interim investigation results" of the wheat flour collusion case. Until now, the Korea Fair Trade Commission (FTC) had not made interim investigation results public. That was because the final conclusion at the full commission meeting often came out differently.
Regarding the first-time disclosure of interim investigation results, the Korea Fair Trade Commission (FTC) said it "considered the public's right to know." The agency's policy is to release interim investigation results for major cases going forward. But there are concerns that "disclosing nonfinal information could amount to shaming corporations."
◇ Korea Fair Trade Commission (FTC) makes unusual release of interim investigation results in "wheat flour collusion" case
The controversy began when the Korea Fair Trade Commission (FTC) on the 20th provided the press corps with a news release summarizing the key points of the "examiner's report," which applies allegations of wheat flour price collusion from 2019 to 2025 to CJ CheilJedang, Daehan Flour Mills, Sajo Dongaone, Samyang Corporation, Samhwa Flour Mills, and Hantop, and when Yoo Sung-uk, the FTC's investigation management officer, personally conducted a briefing.
In response, some said it was "similar to the prosecution's release of interim investigation results." When indicting those involved in major cases, the prosecution has issued press releases summarizing the key points and briefed the reporters covering the office.
Until now, the Korea Fair Trade Commission (FTC) had not disclosed interim investigation results. That is because the sanctions can change at the full commission meeting. The examiner's report, akin to an indictment by the prosecution, contains the FTC examiner's sanction recommendations. It is finalized after deliberation by the FTC "full commission," which functions as the first trial. The full commission consists of nine members: the FTC chair, the vice chair, and standing and nonstanding commissioners.
However, it turns out that the examiner's report recommendations often changed at the full commission. According to the Board of Audit and Inspection's "regular audit results of the FTC," among 87 examiner's reports prepared in 2024, 86% (75 cases) saw the penalty surcharge reduced after going through the full commission. In effect, the full commission judged that the sanction recommendations at the interim investigation stage were excessive.
There have also been cases where the examiner's report recommended sanctions but the full commission concluded no charges. In 2016, the Korea Fair Trade Commission (FTC) investigated Oracle over allegations of software tying and forced sales, and the examiner's report recommended sanctions, but it concluded with no charges.
◇ Korea Fair Trade Commission (FTC) "We will continue to disclose interim investigation results for major cases"
The Korea Fair Trade Commission (FTC) said it released the interim investigation results this time to satisfy the public's right to know. At a press briefing on the 20th, Yoo, the investigation management officer, said, "(Going forward) if it is judged necessary to inform the public from a public-interest perspective, we will disclose (the interim investigation results) within a scope that does not infringe on the respondent's right to defense."
Other regulatory agencies are scaling back announcements of interim investigation results. The Financial Supervisory Service actively used interim inspection result announcements during the Yoon Suk-yeol administration. But when it released its work plan early this year, it said it would use interim inspection result announcements on a limited basis. That followed controversy over what was called the "public disclosure of allegations in the financial sector."
Lee Hwang, a professor at Korea University School of Law, said, "(Announcing interim investigation results) can easily give the impression of 'shaming corporations,'" adding, "Corporations could suffer irreparable harm, so the Korea Fair Trade Commission (FTC) should weigh this carefully."