FTC struggling to collect fines

By Kwak Yeon-soo

The Fair Trade Commission's main office in Sejong / Korea Times file

The Fair Trade Commission (FTC) has collected less than half the fines levied on corporations in 2018, raising questions about whether the corporate watchdog lacks the authority to enforce penalties.

According to data from the National Assembly Budget Office, the antitrust regulator has collected 239.3 billion won ($197 million) out of 529.5 billion of penalties imposed on international and domestic companies since 2017. The collection rate is 45.2 percent.

The rate was 60 percent in 2015 and 60.1 percent in 2016, but has fallen sharply since 2017.

Data analysts said that because heavy penalties were levied in November and December, a significant amount was reported as unpaid in 2018.

The National Assembly Budget Office also said the FTC should prepare for the possibility of losing the lawsuit against Qualcomm over its 2016 decision to fine the U.S. chip maker about 1 trillion won over what it called a monopoly on chip supplies and patent rights.

The case is pending in the Seoul High Court. Even if some of the fines are lost, hundreds of billions of won will need to be returned.

Meanwhile, the Supreme Court has found that a 2009 penalty decision by the antitrust authority against Qualcomm is not completely lawful, sending the case back to a lower court for reconsideration in February.

The FTC had accused the chip maker of paying incentives to its Korean clients that buy more of its modem and radio frequency chips. As a result of the ruling, the FTC had to repay 64 billion won to the global chip maker.