FTC chief stands by chaebol criticism, defends trademark probe

Fair Trade Commission Chairman Joo Byung-ki said Monday that Korean companies must be led by managers with the expertise and conviction to make pioneering decisions if they are to compete with global rivals — and questioned how many domestic firms are actually capable of doing so.

Joo made the remarks during a national audit at the National Assembly, after People Power Party lawmaker Choi Eun-seok raised past statements in which Joo had criticized the hereditary chaebol economy and asked whether he still held the same view. "My phrasing may have been excessive, but I still think that way," Joo said.

The remarks Choi cited were statements Joo made as a professor, in which he argued that chaebol were "exploiting" South Korea and that the hereditary economies of chaebol and large conglomerates were the driving force behind what he called an "exploitative" Korea.

Joo described the corporate decision-making structure of domestic companies as "a very serious problem," stressing that for Korea to develop, each company's managers must act with expertise, take independent responsibility for their actions and be accountable for their own conduct.

He pushed back against characterizations of himself as anti-market or anti-business. "The fact that I made those remarks in academia does not make me anti-market or anti-business — not at all," he said. "Businesses are the protagonists of the market economy, and government bodies like the Fair Trade Commission are the referees."

He added: "As referees, our most important role — for the development of the market order, just as in sports — is to encourage players who compete fairly and remove those who do not."

People Power Party lawmaker Song Eon-seog questioned whether the commission's probe into intra-affiliate trademark royalty transactions at Hanwha and CJ Group amounted to excessive interference, given the absence of clear standards for such fees. Joo acknowledged that "there are currently no established rules" on trademark royalties, but said the commission's investigation was "a probe to grasp the minimum necessary information."

On the direction of the investigation, he said the commission was focusing on whether there had been coercion or improper interference in cases where royalties were raised excessively. He added that the commission was developing basic guidelines for trademark royalties and promised to report the results in detail at a later date.

On criticism that the commission's on-site investigations fall outside judicial oversight because they are not subject to court control, Joo said: "I believe that enhancing the predictability of law enforcement is a very important principle, and we are doing our best to ensure that."

Asked about concerns that companies receiving fine reductions through the cartel leniency program could exploit the system — for instance, by pursuing mergers and acquisitions while rival cartel participants face financial difficulties — Joo said the commission was preparing legislation to prevent leading operators from using the leniency program to secure improper gains.

On the issue of fines collected from unfair-trade sanctions not being used to compensate victims, he said the commission would do its best to ensure victim relief through mechanisms such as a victim relief fund and a class action system for consumers.

People Power Party lawmaker Shin Dong-wook questioned whether newly appointed standing commissioner Kim Ja-bong lacked experience in competition law and suggested the appointment may have been made through personal connections or at the request of the presidential office. Joo said Kim had devoted considerable attention to the issue of separating banking and commerce.

When Shin criticized Kim for appearing on pro-government YouTube programs and making remarks that demonized businesses, Joo said the comments, taken together, were "somewhat open to misunderstanding." He pledged to "carefully consider the concerns raised and do our best to ensure they are not warranted," adding that he would not distinguish between media outlets.

When Choi asked whether Joo had been subject to an internal investigation for misconduct, including drinking-related incidents, during his time at the presidential secretariat, Joo said he had not.