[Column] The High Wall of Consent Resolution

[Sejong=Asia Economy Reporter Joo Sang-don] "10 out of 19 cases" is the number of consent decrees accepted by the Fair Trade Commission (FTC) since the system was introduced in December 2011, including the recent dismissal of the Samsung case. The approval rate slightly above 50% shows that even after more than 20 years since the system's introduction, the barrier to consent decrees remains high.

On the 3rd, the FTC stated that the reason for dismissing the consent decree application filed by Samsung Electronics and four other companies regarding unfair support acts by Samsung Welstory was that "the initiation requirements were not met." The FTC did not disclose the specific reasons for dismissing Samsung's consent decree application, as it could influence the final penalty decision to be made soon. However, it is possible that the FTC judged the unfair support acts toward Samsung Welstory to be serious and clear enough to meet the criteria for prosecution. According to the Monopoly Regulation and Fair Trade Act, in such cases, consent decrees are not applied, and the legal review process proceeds.

The FTC has been investigating Samsung Electronics and four other companies for unfairly supporting Samsung Welstory by allocating 100% of in-house meal supply volumes to Samsung Welstory and trading under favorable conditions. It is known that the FTC's secretariat (equivalent to the prosecution) included in its review report (equivalent to the prosecution's indictment) a recommendation to indict the head of Samsung Electronics' Business Support Task Force (President) and others.

Samsung proposed a 200 billion KRW scale win-win support plan, but it was not accepted. The dominant interpretation is that the amount did not reach the level of fines that could be imposed if illegality was recognized. The FTC's dismissal decision is also understandable. Including this case, about 10 consent decrees have been approved so far, but none involved unfair support allegations.

However, consent decrees have the advantage of resolving controversial issues early within a short period. From a corporate perspective, it reduces uncertainty. The FTC has consistently expressed its intention to actively utilize consent decrees, citing these benefits. The corporate concern that "there is a high possibility of rejection" may ultimately create a vicious cycle that discourages the use of the consent decree system.

This content was produced with the assistance of AI translation services.