Fair Trade Mediation Agency to Establish Mid- to Long-Term Development Plan in Preparation for "Jinhungwon Reorganization"

2022 Major Business Promotion Plan

Strengthening Damage Relief Functions through Substantial Dispute Mediation
Enhancing Research Functions for System Advancement and Law Enforcement Efficiency

Kim Hyung-bae, President of the Korea Fair Trade Mediation Agency. (File photo)

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Mediation Agency plans to promote substantial dispute mediation to strengthen its core function of damage relief this year, while also establishing a mid- to long-term development plan in preparation for the reorganization of the Fair Trade Promotion Agency.

On the 20th, the Mediation Agency announced its "2022 Major Business Promotion Plan" containing these details.

First, in preparation for the reorganization of the Promotion Agency, the Mediation Agency will establish an institutional mid- to long-term development plan reflecting expert opinions and will implement each task without delay. The partial amendment bill to the Fair Trade Act, which includes the Mediation Agency’s reorganization plan, has already been submitted to the National Assembly. The Mediation Agency will strengthen cooperation with the Fair Trade Commission, Ministry of Strategy and Finance, and the National Assembly to ensure smooth progress of related legal amendments and procedures.

Additionally, to activate the management of consent decree implementation, the agency will encourage companies to apply for consent decrees by linking implementation evaluation of agreements with the rating evaluation of Compliance Programs (CP). The consent decree system allows the Fair Trade Commission to close cases without confirming legal violations if the investigated company voluntarily proposes corrective measures deemed appropriate to remedy consumer and trading partner damages. The Mediation Agency is responsible for managing the implementation of consent decrees.

The agency will also strengthen damage relief functions through substantial dispute mediation. For swift and efficient dispute mediation, the Mediation Agency plans to introduce a "Standing Commissioner System" and increase the number of small meetings chaired by standing commissioners in each council to shorten case processing times and raise settlement rates.

To accommodate parties who find it difficult to visit the agency, the Mediation Agency will enhance its "Visiting Dispute Mediation Service" and establish an attendance mediation environment using video conferencing. Through analysis of dispute cases by industry and type, and by gathering opinions from sectors such as convenience stores and online platforms, the agency plans to provide optimized mediation services tailored to each dispute type.

To strengthen mediation capabilities, the agency will conduct training sessions inviting external dispute mediation experts and provide domestic and international Alternative Dispute Resolution (ADR) education programs. To disseminate accumulated dispute mediation know-how and cases, the agency will publish a know-how sharing booklet and hold excellent case presentation meetings.

From the perspective of alleviating difficulties faced by small business operators, the agency will expand the scope of franchise comprehensive support services and diversify the methods of delivery. Furthermore, following amendments to the Agency Act, the agency will promote the establishment of a "Comprehensive Agency Support Center" to perform tasks such as education, counseling, legal support, conflict mitigation, and promotion of coexistence to protect the rights and interests of agency owners.

The agency will also promote the spread of a compliance culture through activation of CP rating evaluations. It will encourage companies’ participation in evaluations by holding on-site briefing sessions targeting major conglomerates and public institutions, and will host various exchange events such as symposiums, roundtable discussions, and forums to expand the base of the compliance culture. Through cooperation and exchanges with similar evaluation institutions such as ESG (Environmental, Social, and Governance) evaluation specialized agencies, the agency will improve the current evaluation system and explore ways to expand the system. Additionally, to enhance the effectiveness and objectivity of CP rating evaluations, the agency plans to supplement related operational guidelines and strengthen quantitative evaluation elements in the evaluation guidelines, thereby revising regulations.

The agency will also promote research to advance the system and improve law enforcement efficiency. First, it will conduct joint research to prepare an integrated dispute mediation law (draft) that consolidates the currently scattered legal provisions related to dispute mediation. Furthermore, to be utilized when the Fair Trade Commission prepares corrective action plans, the agency will compare and analyze the initial market structure outlook and the current situation of major cases such as corporate mergers and abuse of market dominance, and will conduct competition impact assessments on major legislative proposals and amendments to block or minimize competition restrictions.

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