REPORTER’S NOTEBOOKFTC's costly crackdown on conglomerates generates little return

The Fair Trade Commission’s (FTC) increasingly aggressive crackdown on major conglomerates is generating a costly cycle with little tangible return, as the watchdog has been forced to refund billions of won in fines overturned by courts.

The watchdog has returned nearly 290 billion won ($216.7 million) to companies since 2022 after administrative court rulings overturned its sanctions.

The figures raise questions about whether the regulator’s tougher enforcement produces lasting results or simply creates more legal and financial burdens for both businesses and taxpayers.

The latest figures offer little reassurance. For the first nine months combined this year, the FTC returned 23 billion won in fines and associated payments, with 99.7 percent of the amount attributable to sanctions overturned in whole or in part through administrative litigation, according to data submitted to Rep. Choi Eun-seok of the main opposition People Power Party.

But the regulator is moving in the opposite direction. Since President Lee Jae Myung took office last year, the government has pushed to strengthen penalties for corporate violations. The administration has also ordered the antitrust authority to increase its investigative staff to crack down on unfair corporate activities.

The FTC imposed 1.82 trillion won in fines through September this year, nearly matching the combined 1.98 trillion won imposed between 2022 and 2025.

Larger penalties inevitably raise the stakes in disputes over whether violations occurred and how fines were calculated. If courts overturn or revise more sanctions, the public cost of refunding companies — including interest payments — could rise further.

The enforcement climate is also shaping corporate behavior. Business circles have become increasingly accustomed to challenging FTC sanctions in court, partly because companies believe the regulator’s litigation record leaves room to contest its decisions.

“Major industry players are already widely aware that the FTC does not have a particularly high win rate in penalty-related lawsuits,” an industry official said. “With the current administration taking a tougher regulatory stance toward businesses, companies are preparing accordingly, including by gearing up for litigation.”

For companies facing potentially massive fines, challenging a penalty has become a way to protect their finances rather than simply an exceptional legal remedy. Lengthy court battles can also delay final settlements and force the regulator to defend its calculations years after announcing a sanction.

The question is not whether corporate misconduct should be punished. It is whether the FTC can make its penalties more legally durable as it expands enforcement. Without stronger cases and more defensible calculations, a tougher crackdown could produce bigger headline fines without delivering equally lasting results — while leaving taxpayers to cover the cost when those sanctions fall apart.