Experts Say "Dedicated Investigation Channel Needed for Serious Economic Crimes" [Fair Trade Investigation in Turmoil] ⑥

Antitrust Division Established Under U.S. Department of Justice
"Direct Adoption Could Lead to More Confusion"
Calls for Streamlining Overlapping Investigative Structures

With the upcoming adjustment of investigative authority over fair trade matters, there is considerable debate regarding the idea of establishing a dedicated criminal enforcement unit under the Ministry of Justice—similar to the Antitrust Division of the U.S. Department of Justice (DOJ).

U.S. Department of Justice (DOJ). Yonhap News Agency

In the United States, apart from the Federal Trade Commission (FTC), which fulfills the role of the Fair Trade Commission, there is an independent Antitrust Division within the DOJ, led by an assistant attorney general. In cartel cases, individuals can face up to 10 years in prison and fines of up to 1 million dollars (about KRW 1.42 billion), while corporations can be fined up to 100 million dollars (about KRW 142 billion).

Given the severe penalties and the high level of expertise required, the Antitrust Division consistently handles criminal investigations and prosecutions of cartel cases. This has led to arguments that, to dismantle increasingly sophisticated and covert large-scale cartels, South Korea should also establish a specialized investigative body that combines compulsory investigative powers with economic analysis capabilities.

However, there are also many cautious voices arguing that the American model is not necessarily the best answer. The U.S. system, which divides enforcement of competition law between a competition authority and a criminal justice authority, is actually an exception, and it would not be easy to transplant this structure directly into South Korea.

An attorney specializing in fair trade at a major law firm commented, "The United States imposes extremely severe criminal sanctions for collusion, and the Antitrust Division has long operated as a separate system, but it is difficult to see this structure as universal. Especially in countries like South Korea, where the level of criminal fines and the institutional foundations are different, simply adopting the American organizational framework could actually increase market confusion."

The investigative structures of major foreign countries differ from the U.S. model. In Canada, the competition authority leads administrative and criminal investigations and only transfers criminal prosecutions to the federal prosecution service (PPSC). In major European countries such as Germany, and at the European Union (EU) level, competition authorities also generally conduct the initial investigation and only refer cases to criminal proceedings in limited circumstances. In Japan, the Japan Fair Trade Commission (JFTC) has both on-site investigation and criminal accusation functions.

Experts agree that there is a need to streamline South Korea’s multi-layered, overlapping investigative structure and to unify the response channel for serious economic crimes. An official familiar with the situation at the Fair Trade Commission stated, "Looking at overseas cases, it is more common for the competition authority to investigate first and only refer cases to the criminal track when absolutely necessary. Rather than unconditionally copying the U.S. model, it would be more realistic for South Korea to manage serious crimes such as collusion through a separate criminal track, while dividing roles among specialized agencies according to the nature of each case for all other matters."

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