Korea Federation of SMEs Holds Briefing on Response Strategies to Strengthened Fair Trade Act Sanctions

Emphasis on the Need to Expand Adoption of the CP Rating System

The Korea Federation of SMEs announced on May 12 that it held a briefing session titled "Strengthened Fair Trade Act Sanctions and SME Response Strategies," targeting cooperative associations and executives and employees of member companies.

A panoramic view of the Federation of Small and Medium Businesses located in Yeouido, Yeongdeungpo-gu, Seoul. Federation of Small and Medium Businesses

This session was organized in the Win-Win Room at the Korea Federation of SMEs in Yeouido, Yeongdeungpo-gu, Seoul, to help prevent violations of the Fair Trade Act, which is being strengthened, including the Fair Trade Commission's push to revamp its penalty surcharge system, and to enhance SMEs' ability to respond to unfair practices by large corporations.

The event proceeded in the following order: an overview of the Fair Trade Commission's direction for revising penalty surcharges; practical strategies for SMEs to mitigate fair trade risks; an introduction to the Fair Trade Compliance Program (CP) rating system and related incentives; and an explanation of the application process and procedures for CP rating evaluation.

First, Nam Donggil, an official at the Fair Trade Commission’s General Adjudication Division, explained the direction and main points of the planned overhaul of penalty surcharges under the Fair Trade Act, highlighting key issues that SMEs need to be aware of in light of the current trend toward stronger sanctions. Sungman Kim, attorney at Lee & Ko, presented major fair trade risks that SMEs may encounter in practice and provided case-based guidance on how to respond.

Next, Jeon Miseon, an official from the Fair Competition Policy Division of the Fair Trade Commission, and Jo Sangkil, team leader at the Korea Fair Trade Mediation Agency, introduced the CP rating system, its incentives, and the application procedures. They particularly emphasized that, as the CP can contribute to a culture of voluntary fair trade compliance, reduce fair trade risks, and be used as a means to mitigate penalty surcharges, there is a need for its broader adoption by SMEs, who currently utilize it less than large corporations.

Yang Chanhoe, Executive Vice President of the Korea Federation of SMEs, stated, "SMEs must proactively recognize and prepare for potential violations of the Fair Trade Act, while also strengthening their ability to respond to unfair practices by large corporations that may occur in real business transactions. We hope this session will help SMEs better understand the strengthening of Fair Trade Act sanctions, encourage wider adoption of the CP program, and equip them to respond more effectively to unfair trade practices by large corporations."

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