[Reporter’s Notebook] The Shipping Cartel Case Entering the Fair Trade Commission’s Plenary Session Framework

[Sejong=Asia Economy Reporter Joo Sang-don] The Fair Trade Commission (FTC) has decided to establish a procedure to receive official opinions from related ministries before holding a plenary meeting. They plan to announce a draft amendment to the "Rules on the Operation of FTC Meetings and Case Procedures" for public comment. This aims to gather opinions mainly on cases with significant market impact, with a clear focus on the shipping cartel case, which is approaching a final decision.

The shipping cartel case has been ongoing since the FTC Secretariat began investigating following the first report in August 2018. The FTC has sent a review report containing recommendations for sanctions, including fines (up to 800 billion KRW) and corrective orders, on the grounds that 23 domestic and international shipping companies, including HMM, colluded on freight rates for the Korea-Southeast Asia route. However, not only the shipping companies but also the Ministry of Oceans and Fisheries and the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee have opposed the FTC's sanctions, arguing that the Shipping Act contains provisions allowing joint actions by shipping companies, making the FTC's penalties unfair.

Ultimately, FTC Chairman Cho Sung-wook promised to strengthen the collection of opinions from related ministries during the case review process, leading to the establishment of a basis for the FTC to request submissions of opinions from related administrative agencies on its own authority. The intention is to handle cases within the framework of the plenary meeting while sufficiently gathering opinions from related ministries.

It is fortunate that a framework for discussion has been created. The Ministry of Oceans and Fisheries has also stated that if the FTC rules are amended, it will submit opinions before the plenary meeting and appear in person at the plenary meeting to argue against the unfairness of the sanctions. While the outcome of the plenary meeting cannot be predicted, at least the official review process will have strengthened the collection of opinions from related ministries.

Since the FTC and the Ministry of Oceans and Fisheries are strongly opposed to each other, the positions of both ministries could vary significantly depending on the conclusion. However, considering that the shipping cartel case has escalated into inter-ministerial conflict, the sooner the conclusion is reached, the less the repercussions will be. Given the current situation, it is highly likely that the discussion and final decision on the shipping cartel case will extend into next year. With the discussion framework now established, it is hoped that the best decision will be made.

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