FTC’s decision to revive conglomerate probe unit feared to stifle corporate activities

Fair Trade Commission Chairman Ju Biung-ghi speaks during a meeting with condustruction industry officials in Seoul, Thursday. Yonhap

The Fair Trade Commission's (FTC) move to revive a long-defunct investigation bureau is reigniting debate over whether the step will strengthen market oversight or further weigh on corporate sentiment.

The antitrust watchdog said it will launch a new Key Investigation Planning Bureau to handle large-scale violations involving online platforms, monopolistic practices and major conglomerates.

The unit is widely viewed as a revival of the FTC’s former Investigation Bureau, which was dismantled in 2005 amid criticism that it excessively interfered in corporate management activities.

The previous bureau had gained notoriety for conducting sweeping investigations into major business groups, often dubbed the “grim reaper of the business community.”

FTC Chairman Ju Biung-ghi said the new body would function as a specialized organization capable of quickly identifying and correcting complex, high-profile cases.

“It will serve as a rapid-response task force that can improve the speed and effectiveness of investigations when nationwide consumer damages issues arise,” Ju told reporters during a press conference Tuesday.

Fair Trade Commission Chairman Ju Biung-ghi speaks during a press conference at Government Complex Sejong, Thursday. Yonhap

However, concerns are mounting within the business community that the FTC’s renewed investigative drive could lead to excessive regulation and discourage corporate investment at a critical time when Korea’s capital market is rapidly growing with a record rally of the benchmark KOSPI.

Critics argue the move, combined with other business-sensitive legislation, such as the contentious “yellow envelope law,” a revision to labor regulations that expands workers’ rights, will end up shrinking corporate investment. The law also enables subcontractor unions to directly seek compensation from primary contractors, broadening the scope of labor disputes.

“The recurrence of the bureau will end up increasing large-scale investigations into major conglomerates, which will undermine management stability and their investment plans,” an official from a conglomerate said.

The launch of the new bureau reflects the broader policy direction of President Lee Jae Myung and his administration, which has signaled a tougher stance against collusion and what government officials describe as predatory practices harming ordinary consumers.

Business groups warn that the watchdog’s broader investigative powers could increase the likelihood of arbitrary enforcement and prolonged legal disputes between regulators and companies.

Several high-profile FTC sanctions imposed in recent years were later overturned in court. These included penalties over allegations that Naver manipulated shopping search algorithms and accusations that Kakao Mobility unfairly allocated ride-hailing calls to affiliated drivers.

Such reversals have fueled criticism that some investigations were overly aggressive or lacked sufficient legal grounds.

The FTC emphasized the need for rapid investigations and the ability to mobilize large numbers of personnel for complex cases. Potential targets for expedited probes could include major consumer incidents, such as data leak controversies involving e-commerce giant Coupang or alleged collusion among sugar and flour manufacturers.