The nation’s antitrust watchdog chief underlined that prosecutors’ recent raid of the Fair Trade Commission is unrelated with the FTC’s move to overhaul its fair trade law, which includes the abolition of its exclusive right to charge businesses.

“Following the raid by the prosecution, there have been news reports that imply conflicts between the prosecutors and the FTC, spreading unnecessary rumors,” FTC chief Kim Sang-jo said in a statement Friday.

“Prosecutors’ latest investigation targets the FTC’s past problems pointed out for a long time and we will sincerely respond to the investigation,” Kim said. 

“For the complete overhaul of the fair trade law, it is to fortify the foundation of the Korean economy’s future beyond the FTC. The two things -- prosecutors’ raid and the FTC’s exclusive right to charge -- are completely separate issues and prosecutors share the same view with us,” he said.

His remark came after prosecutors raided the FTC on Wednesday on allegations that the FTC overlooked some companies’ violation of fair trade laws in exchange for recruitment favors.

However, some media outlets raised speculations that prosecutors raided the FTC as the two organizations had conflicts in the process of the FTC’s overhaul of the law.

The exclusive right to charge businesses is a system in which prosecutors can begin investigation only when there is accusation from the FTC in the areas of violation of fair trade laws, such as price fixing. Prosecutors have claimed that the FTC’s exclusive right to charge should be abolished and prosecutors should expand their investigation power.

“Separately from the prosecutors’ investigation, we will double efforts to monitor and reflect ourselves to innovate the FTC,” Kim said.

Meanwhile, Kim attended a seminar hosted by the European Chamber of Commerce in Korea on Friday to deliver a keynote speech with the topic of “New Economic Landscape & Competition Policy.” In his speech, he shared the Korean government’s policy approach and tasks aimed at economic democratization as well as its plan for revision of the fair trade law.

“Due to growing economic uncertainties in Korea, ‘Dynamic Korea’ has no longer become dynamic and has been rather inactive. There is no more trickle-down effect across the economy,” Kim said in a speech.

It is time for the Korean economy to develop its own innovation capacity and find new growth engines, he added.

“In line with the Moon Jae-in administration’s new economic policies, which are people-centered, the FTC will focus on making a fair economy where all economic players should be able to work in a level playing field,” he said. 

By Shin Ji-hye (shinjh@heraldcorp.com)