The Korea Fair Trade Commission is reportedly pushing a plan, as of the 22nd, to cut the penalty surcharge by only 75% even for a company that is the first to voluntarily report collusion if it reported after the commission launched an investigation. Currently, the first voluntary reporter is exempted from 100% of the penalty surcharge regardless of whether the report was filed before or after the launch of the investigation.
The Korea Fair Trade Commission (FTC) is reviewing an amendment to the enforcement decree of the Monopoly Regulation and Fair Trade Act with these contents at its core. If a company that is the first to voluntarily report collusion (first in line) reports before the FTC launches an investigation, it can receive the same 100% exemption from the penalty surcharge as now. In contrast, even if it is the first voluntary report, if it is filed after the FTC launches an investigation, the benefit would be reduced to a 75% reduction in the penalty surcharge.
An FTC official said, "We believe there needs to be a differential in penalty surcharge reductions between companies that voluntarily report before a collusion investigation begins and those that report after it begins."
The benefit of reducing the penalty surcharge for the second-in-line company to voluntarily report collusion appears likely to remain as is. A second-in-line company can receive a 50% reduction regardless of whether the report was filed before or after the FTC launched an investigation.
Meanwhile, the FTC is also pushing to raise collusion penalty surcharges. Currently, collusion penalty surcharges are imposed at up to 20% of related sales.
A legal professional specializing in fair trade said, "Even if the reduction range for the penalty surcharge on the first-in-line voluntary reporter of collusion is narrowed, if the collusion penalty surcharge itself increases, the amount reduced could be similar or even larger."