FTC chief urges fair biz relationship between large, smaller firms
SEJONG, Oct. 22 (Yonhap) -- The chief of South Korea's corporate watchdog said Monday that large companies should redouble efforts to stem unfair business practices in deals with smaller players.
Kim Sang-jo, head of the Fair Trade Commission (FTC), also said his agency will draw up detailed regulations regarding unfair business practices by large companies.
The FTC said earlier it plans to carry out probes into the practices that are blamed for allowing founding families of private conglomerates, called chaebol here, to easily net large profits by having subsidiaries award lucrative contracts to each other, undermining the principle of fair competition.
The watchdog said it plans to unveil detailed data on their holding company structures, debt guarantees among affiliates and ownership structures before the end of the year.
The antitrust watchdog, in addition, will implement laws regarding subcontracting and franchise businesses in a way that helps better protect subcontractors and franchisees.
The FTC stressed that creating a level playing field for small and medium-sized companies is very important in a country where chaebol have dominated the economy for decades.
Punitive damages of up to three times the actual losses incurred by illegal business practices, such as unfair payments and returns, as well as cutting back supplied goods, will be imposed.
Franchisers are required to pay damages stemming from any wrongful actions they have taken or other irregularities to their franchises, with such revised rules set to take effect early next year, according to the FTC.
One of the key policy objectives for the Moon Jae-in government is ensuring and accelerating economic democratization, a process that calls for stepped-up efforts to create new quality jobs -- another key election pledge of the president -- as well as greater support for the socially and economically marginalized population.
sam@yna.co.kr
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