Organizational Structure

Republic of Korea

1. Composition of the Fair Trade Commission

  • The Fair Trade Commission is composed of a commission, a secretariat, and four regional offices located in metropolitan cities.
  • The commission is composed of nine commissioners, including the chairman. The chairman and vice chairman are appointed by the president upon recommendation by the prime minister.

    Organization Chart of the Fair Trade Commission
    2. Operation of the Fair Trade Commission

    2.1 Commission

  • The chairman represents the Fair Trade Commission and oversees and supervises the public servants belonging to the commission. When the chairman is unable to carry out his/her duties due to unforeseen circumstances, the vice chairman acts for the chairman.
  • The commissioners are nine in all, including the chairman and the vice chairman. Among them, four are non-standing commissioners. Their term of office is three years which can be renewed only once.
  • The meetings of the commission take place in the form of a full committee or a subcommittee.
  • The full committee is presided over by the chairman with the participation of all nine members duly elected and seated. The full committee deliberates on matters relating to the enactment, revision, modification, or interpretation of the acts, decrees, and notifications relating to fair trade. It also reaches judgments regarding cases for which objections have been filed and deliberates on and reache s decisions on other related matters. Decisions at the full committee require the concurrence of a majority of the members duly elected and seated.
  • The subcommittee is composed of one standing commissioner and two non-standing commissioners and its meetings are presided over by each standing commissioner. The subcommittee deliberates and decides on ordinary or light cases or matters referred to it by the full committee. Decisions by the subcommittee require the unanimous consent of all the members.

    2.2 Secretariat

    The Secretariat is composed of six bureaus that are in charge of developing policies and dealing with cases along with the Office of General Counsel who is responsible for the affairs relating to commission meetings.

  • The Fair Trade Policy Bureau is responsible for the coordination of fair trade policies, economic deregulation, and international cooperation in competition policy. Fair Trade Policy Division establishes and coordinates basic plans relating to fair trade laws and policies; research and development of competition policies; promotion of public relations and inter-ministerial cooperation. Competition an d Deregulation Division improves anti-competitive laws and policies. International Affairs Division I establishes international competition policy; strengthens bilateral cooperation; and reviews international contracts. International Affairs Division II reinforces cooperation in competition policy at international organizations such as OECD, WTO, UNCTAD and etc.
  • The Bureau of Monopoly Regulation is in charge of matters relating to the economic concentration among business groups (better known as chaebol). Monopoly Regulation Policy Division establishes and enforces policies designed to regulate monopolies and oligopolies; designates market-dominating enterprises and monitors market power abuse. Enterprise Group Division establishes and enforces measures desi gned to alleviate economic concentration; designates top 30 business groups (enforcement of regulations relating to the ceiling on total amount of capital investment and on debt guarantees). Merger and Acquisition Division examines mergers; prohibits the establishment of and conversion to holding companies. Monopoly Watch Division investigates unfair in-house trading of enterprise groups and unfair business practices by public enterprises.
  • The Bureau of Competition is responsible for regulating unfair business practices which impede fair trade and undue collaborative acts. Unfair Trade Practice Regulation Division establishes and enforces measures designed to promote competition and establish order in the market; investigating general unfair trade practices. Special Unfair Trade Practice Regulation Division investigates unfair business practices in certain areas of trade, including the wholesale and retail businesses, the service business and the financial business. Cartel Division investigates undue collaborative acts by enterprises. Trade Association Division investigates undue collaborative acts or unfair business practices by trade associations.
  • The Bureau of Consumer Protection is responsible for regulating representations, advertisements, and standardized contracts which affect the everyday lives of consumers. Consumer Protection Planning Division establishes and enforces consumer protection policies; and examines representations and advertisements pertaining to manufacturing and real estate businesses. Advertisement Division examines rep resentations and advertisements pertaining to the distribution, communications, financial, and transportation businesses. Contract Terms Division examines standardized contracts pertaining to the financial, insurance, distribution, and public businesses. Contract Terms Division II examines standardized contracts pertaining to the manufacturing, real estate, and service businesses, such as public facilities, membership clubs, and etc.
  • The Bureau of Subcontract is in charge of affairs relating to subcontract transactions. Subcontract Planning Division establishes and enforces measures designed to establish fairness in subcontract transactions. Subcontract Division I investigates subcontract transactions in the construction-related businesses. Subcontract Division II investigates subcontracting in the manufacturing, repairing, and s oftware industries as well as in the sales businesses.
  • The Bureau of Investigations is in charge of planned investigations. Investigation Planning Division establishes investigation plans and gathering information. Investigation Division I, II Investigate certain business sectors.
  • The General Counsel is in charge of reviewing the enactment or revision bills of government acts and decrees with anti-competitive elements; overseeing matters relating to administrative lawsuits or reports; and dealing with matters relating to meetings outside the commission, such as cabinet meetings; and is responsible for the operation of the meetings at the commission, writing and keeping the min utes, maintaining order in the proceedings court room, and etc. To assist the General Counsel, there are Assistant General Counsel,,.

    2.3 Regional Offices

    The Commission has regional fair trade offices in four metropolitan cities: Pusan, Kwangju, Taegu, and Taejeon. Each office consists of three divisions. General Services Division which is responsible for giving legal advice, promoting education and public relations, and cases pertaining to collaborative acts; Competition Division which deals with cases relating to unfair business practices and unfair s ubcontract transactions; and dvertisements and Premiums Division in charge of cases relating to unfair representations and advertisements as well as provision of gifts.