The FTC Chairman, Ju Biung-ghi, indicated that the antitrust watchdog remains committed to enforcing regulations on monopolistic online platforms. This initiative had been halted earlier due to resistance from the US before the final trade agreement was reached between the two nations last month.
Recognized for his significant influence on President Lee Jae Myung's economic strategies, Ju critiqued South Korea's current economic sanctions on unethical business behavior as inadequate.
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He supported the president's initiative to levy significant penalties against Coupang for a widespread data breach impacting approximately 34 million individuals.
“Due to the super network effect, we eventually have only a few platforms dominating the global market,” he said. “Regulation against excessive monopolistic power should be implemented, and that will promote competition and incentivize innovation.”
The head of the Federal Trade Commission (FTC) expressed his opinions at a policy discussion organized by the American Chamber of Commerce in Korea (AMCHAM) regarding equitable trade policies in the modern digital age. This event occurred subsequent to his private meeting with AMCHAM delegates the previous month.
“Basically, we would like to support legislative discussions related to the digital market,” Ju says.
“Currently, we have active legislative discussions at the National Assembly.”
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Ju underscored the FTC's adherence to the principle of fair treatment towards foreign companies, guaranteeing that they are not subjected to unjust obstacles. His statements corroborated the Korea-U.S. Joint Fact Sheet, highlighting Korea's pledge to prevent any discrimination against US companies and eliminate unnecessary hurdles in regulations related to digital services, network fees, and online platform rules.
“Economic penalties in Korea are relatively mild compared with other developed countries, such as those in the European Union or Japan,” Ju said. “We have to enhance penalty levels.”
Moreover, Ju suggested that regulations could be utilized as a valuable mechanism to promote innovation. He provided illustrations such as Google, which diversified into streaming and artificial intelligence (AI) in addition to its core search engine operations, and Microsoft, which integrated AI into its operating system offerings. He went on to present the Lee administration's strategy for enhancing economic sanctions against unjust business practices instead of pursuing legal action in such instances.
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Subsequently, during the question and answer session that followed his discussion, Ju further emphasized the need for regulatory measures.