The Debate Over Abolishing the 'Jeonsokgobalje' Gains Attention Again Following Yoon Seok-yeol's Candidacy Declaration

Although It Was President Moon Jae-in's Presidential Pledge, It Was Excluded from Last Year's Fair Trade Act Amendment

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Joo Sang-don] As former Prosecutor General Yoon Seok-yeol officially declared his candidacy for the 20th presidential election, discussions on whether to abolish the exclusive prosecution system have once again come into the spotlight. The abolition of the exclusive prosecution system was promoted as a presidential pledge of President Moon Jae-in. However, it was excluded during the National Assembly's deliberation process when the "Monopoly Regulation and Fair Trade Act" was amended last year.

On the 29th, former Prosecutor General Yoon officially announced his presidential candidacy at a press conference held at the Maeheon Yun Bong-gil Memorial Hall in Seocho-gu, stating, "I will resolutely reestablish the value of fairness that transcends liberal democracy, the rule of law, eras, and generations."

On that day, former Prosecutor General Yoon did not express his stance on the exclusive prosecution system. However, he has previously shown a position that the exclusive prosecution system should be abolished. In the past, during a written response to a confirmation hearing, Yoon emphasized, "The abolition of the exclusive prosecution right is essential to achieve a fair economic order, including the suppression of serious crimes such as hardcore collusion (price and bid rigging)." There is a high possibility that related discussions will resurface in the future.

The exclusive prosecution system, introduced in 1980, is a system where the prosecution can investigate and indict only if the Fair Trade Commission (FTC) files a complaint regarding violations of the Fair Trade Act such as collusion. However, President Moon pledged to abolish the FTC's exclusive prosecution right, aiming to strengthen sanctions against unfair trade, amid criticisms that the FTC was passive in prosecuting large corporations. The FTC began serious discussions on abolishing the exclusive prosecution system after former Blue House Policy Chief Kim Sang-jo took charge of the FTC. Shortly after his appointment as chairman, Kim pointed out problems with the exclusive prosecution system, saying, "The previous FTC failed to secure expertise and consistency in major cases and policy decisions, and procedural transparency was compromised to the extent that public ethics were questioned."

Eventually, the FTC proposed an amendment to the Fair Trade Act in November 2018 to abolish the exclusive prosecution right. However, it was automatically discarded due to the expiration of the 20th National Assembly's term. The FTC resubmitted a full amendment to the Fair Trade Act, including the exclusive prosecution system, to the National Assembly in August last year. During the National Assembly's deliberation, the ruling party passed a revised bill excluding the exclusive prosecution system, effectively nullifying its abolition. At that time, the ruling party explained, "We decided to maintain the FTC's exclusive prosecution right reflecting the concerns of the business community." However, there was also an interpretation that this was a result of the conflict between Yoon Seok-yeol and Chu Mi-ae, i.e., a 'political decision.' A representative from a major law firm said, "One of the reasons the abolition of the exclusive prosecution right, which the government and ruling party were pushing for, was excluded from the comprehensive amendment of the Fair Trade Act was to check former Prosecutor General Yoon. With Yoon's declaration of candidacy for the presidential election, there is a high possibility that discussions on abolishing the exclusive prosecution system will gain momentum again."

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