[Exclusive] Fair Trade Commission Sees Record-High External Contacts in Q1... Moves to Gwacheon Due to Investigation Room Shortage

53% Surge in Case-Related Contacts
Widespread Collusion Probes Lead to Sharp Increase in FTC-Corporate Interactions

The number of Fair Trade Commission officials who had contact with external parties—such as company executives or employees and legal professionals from law firms—reached a record high for the first quarter. This increase is attributed to the extensive investigations into large-scale collusion cases affecting essential goods like paper, sugar, flour, and starch syrup, all of which are closely tied to daily life. Additionally, the number of major business groups under regulatory surveillance has risen, expanding the scope of contact with companies.

The Highest Number for a First Quarter Since the System Was Introduced in 2018

According to the Fair Trade Commission's "Status Report on Contact with External Parties for the First Quarter of 2026" released on May 8, a total of 1,087 external individuals had contact with Fair Trade Commission staff. This figure is the highest for any first quarter since the external contact reporting system was implemented in 2018, representing a 37% increase from the same period the previous year (663 individuals). Even when considering all quarters since quarterly statistics began in Q4 2019, this is the third highest on record, following Q4 2019 (1,376 individuals) and Q2 2020 (1,113 individuals).

The number of reported contacts was 451, up 37% from 329 in the same period last year, marking the highest level in the past three years. Notably, there was a significant increase in contacts for actual "case handling." Contacts related to case matters—such as document submissions, witness interviews, and on-site investigations—increased 53% from 266 in the first quarter of last year to 406 this year, while "non-case-related contacts," such as greetings, actually decreased from 63 to 45.

This trend is analyzed as a result of intense investigations into large-scale collusion involving essential goods like paper, sugar, flour, and starch syrup, which are worth several trillion won. With the recent surge in investigation demand, there have even been instances where investigators had to travel to and borrow investigation rooms at the Seoul regional office (Gwacheon) due to a shortage of facilities at the Sejong Government Complex. In just the first four months of this year, the fines imposed by the Fair Trade Commission have already exceeded 1 trillion won.

Accordingly, the number of contacts with law firm professionals (767 individuals) and executives and employees of major business groups (320 individuals) has increased significantly. Both groups represent the highest headcounts for any first quarter on record. The number of major business groups has also expanded each year, from 59 in 2019 to 102 this year, increasing the number of parties that must be contacted for work purposes. Coupang, which faced controversy over its de facto owner, was subject to a separate on-site inspection as well.

Introduced in 2018 to "Restore Trust"... Strengthened Disciplinary Standards for Post-Management

The "external contact reporting system" was introduced in 2018 during the tenure of former Chairman Kim Sangjo to restore trust in the Fair Trade Commission, which had suffered from scandals such as reemployment corruption. The core of the system is to ensure transparency by requiring officials to report, within five days, any in-person or remote contact with three types of external parties related to cases: (1) law firm attorneys, (2) public affairs teams of major business groups, and (3) former Fair Trade Commission officials now employed by law firms or major business groups. However, contacts for socially acceptable reasons, such as attending family events, and non-face-to-face contacts via official government email or the Commission's landline do not require reporting.

As the frequency of contacts has increased, the Fair Trade Commission has recently made disciplinary regulations more specific to prevent potential collusion. The previous rule, which vaguely stated that "violations of reporting obligations may be subject to disciplinary action," has now been clarified. If an official is caught meeting former Fair Trade Commission employees now working at law firms or major business groups more than twice in one year without reporting, disciplinary action will be taken. For typical law firm attorneys or public affairs team members of major business groups, three or more violations in a year will result in disciplinary measures. Depending on the severity of the case, penalties can include wage reductions or suspension.

A Fair Trade Commission official stated, "Collusion cases involve many parties, and it is necessary to obtain statements from everyone involved, from those who carried out the actions to those who gave the orders, so naturally the number of contacts increases." The official added, "We will strictly enforce work regulations to maintain transparency throughout the investigation process."

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