Intelligent Crimes Using Telegram and Coded Language... How Can They Be Caught Without Supplementary Investigations? [Fair Trade Investigation in Chaos] ③

Organized Evidence Destruction as Investigative Net Tightens
Fair Trade Commission’s “Voluntary Investigations” Face Limitations in Tracking
Prosecution Conducts Two Months of Raids and Forensics
Scale of Starch Sugar Cartel Uncovered
Crucial Evidence Secured through “Compulsory Investigations”
Government Defends Against Companies’ Lawsuits to Overturn Fines

"You might be able to stay silent during an investigation by the Fair Trade Commission, but there's no way you can do that once it goes to the prosecution."

The differences between administrative agency investigations and those by prosecutors were clearly revealed in the recorded phone calls of executives from the starch sugar industry, who were involved in a price-fixing scheme worth more than 10 trillion won. The recent "starch sugar cartel case" investigated by prosecutors is frequently cited as an example showing the necessity of supplementary investigations in fair trade crimes.

The filing and delivery of a criminal complaint, as prescribed by the exclusive right of accusation held by the Fair Trade Commission, marks the beginning of a criminal case. The prosecution has consistently supplemented the cases referred by the Fair Trade Commission by identifying individual perpetrators, reconstructing the chain of command, and securing additional evidence to complete the criminal proceedings. Even if the Fair Trade Commission files a complaint regarding a corporation's illegal activities, for criminal liability to be established in court, it must still be clarified who made the decisions and how far up the reporting line the information reached. However, with the launch of the Serious Crimes Investigation Agency and discussions about reducing or abolishing the prosecution's supplementary investigation functions, concerns are growing that the "completeness of investigations" in fair trade cases may be undermined.

◇ Compulsory Investigations Overcome the Limitations of Voluntary Probes

Fair trade crimes often involve numerous employees within a company, who use Telegram or coded language and operate in a decentralized, secretive manner. In this particular investigation, companies schemed by writing price increases on whiteboards like "star instructors," or monitored compliance by taking "certification shots" of collusion documents being sent out. As the investigation closed in, they shredded evidence with paper destroyers and erased records through in-house forensic work, showing little hesitation in systematically destroying evidence.

The problem is that the Fair Trade Commission's "voluntary investigations," which require the consent of the other party, have inherent limitations in tracking such organized cover-ups. If a company deliberately destroys evidence or tries to cut off the trail, it is difficult to immediately secure evidence as one could in a compulsory investigation. An attorney specializing in fair trade cases explained, "If the Fair Trade Commission's strength lies in assessing market structure and anti-competitive effects, the prosecution's role is to build the criminal case by identifying individual actors, those higher up, and proving intent." He noted that while a criminal complaint may suffice for administrative actions, it is not enough to withstand a criminal trial.

An attorney who previously worked at the Fair Trade Commission also stated, "While the Fair Trade Commission determines illegality based on market position and competitive conditions, criminal cases require specifying individual involvement and the reporting hierarchy," emphasizing that the points of verification are fundamentally different. In the starch sugar case, the Fair Trade Commission initially reported the scale of the cartel at approximately 6.2 trillion won. However, through two months of raids and forensic work, the prosecution uncovered hidden internal emails and pieced together scattered transaction records, ultimately revealing a record-breaking 10.1 trillion won collusion in the food industry.

◇ Without Supplementary Investigations, Administrative Lawsuits Falter

The bigger issue is that gaps in supplementary investigations can not only lead to failed criminal prosecutions but also undermine the effectiveness of national administrative enforcement. Statements from involved parties and reconstructed evidence obtained through compulsory investigations serve as a crucial defense for the government in administrative lawsuits, which companies often launch with the backing of major law firms after being hit with hundreds of billions or even trillions of won in fines.

When companies face massive fines, they hire large law firms and initiate lawsuits to have the fines overturned. If there is no decisive evidence obtained through compulsory investigation, it becomes difficult for the government to defend its position in fierce legal battles. An attorney at a major law firm commented, "Investigative agencies can efficiently target those higher up through raids," and warned, "If supplementary investigations cease after just filing a criminal complaint, the government could lose in administrative lawsuits, undermining the imposition of fines."

The objectives and investigative approaches of each agency are fundamentally different. A former legal advisor at the Fair Trade Commission stated, "The Fair Trade Commission must meticulously calculate the facts down to the last won to avoid the risk of losing when imposing massive fines," adding, "In contrast, investigative agencies focus on securing imprisonment or fines, so they tend to handle matters more roughly, such as grouping suspects together to obtain confessions, rather than engaging in complex economic analysis."

The consensus in legal circles is that only when investigative agencies have compulsory powers can they fully suppress increasingly sophisticated cartels. Regardless of whether investigative authority is transferred to the Serious Crimes Investigation Agency or elsewhere, a precise supplementary investigation system must remain in place to fill any gaps after a Fair Trade Commission complaint. The aforementioned attorney stressed, "The Fair Trade Commission and the prosecution are like the two wheels of a cart; if either is missing, the system won’t function," adding, "If the closely coordinated division of roles is forcibly separated, the nation’s ability to respond to trillion-won cartels will inevitably be weakened."

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