The Korea Fair Trade Commission said on the 6th it will toughen sanctions for submitting false "designation materials" by large business groups. The Korea Fair Trade Commission (FTC) designates large business groups and applies stricter regulations to prevent economic power from concentrating in specific groups. At this time, the Korea Fair Trade Commission (FTC) receives materials such as the status of affiliates from corporations to determine whether to designate a large business group, and these are called designation materials.
The Korea Fair Trade Commission (FTC) on this day gave administrative notice of a revised draft of the "guidelines for accusations regarding violations of reporting and submission obligations related to business groups," which expands the scope of those subject to accusation for submitting false designation materials. The notice period runs until the 26th of this month.
Under the current accusation guidelines, only cases where the actor's awareness that they knew or could have known of the obligation violation is markedly likely, or where awareness is considerable and the seriousness of the violation is marked, are subject to accusation. Because of this, even if the seriousness of the violation was marked or considerable, cases could be excluded from accusation if the likelihood of awareness was not "clear." Accordingly, the Korea Fair Trade Commission (FTC) decided to revise the guidelines so that cases where the seriousness is considerable and the likelihood of awareness is "considerable" are also included as subjects of accusation.
In addition, the current accusation guidelines do not separately set criteria for accusation in cases of repeated legal violations, but the revised draft establishes related provisions. Under the revision, if the same violation is repeated within the past three years, it will, in principle, be subject to accusation.
The Korea Fair Trade Commission (FTC) said, "Designation materials are the foundation of large business group policy (施策)," adding, "With this revision, we strengthened responsibility and sanctions for acts such as false submissions."