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| Fair Trade Commission (FTC) Chairman Han Ki-jeong speaks during a press conference at Sejong Government Complex, Monday. Courtesy of Fair Trade Commission |
By Lee Kyung-min
Kakao Corp. and Hankook Tire are in the crosshairs of Fair Trade Commission (FTC) Chairman Han Ki-jeong, who pledged Monday to implement strict measures against the scandal-ridden IT and tire manufacturing giants.
Han's drive seeks to rein in the growing online platform monopoly of Kakao and the corrupt corporate practices of Hankook in granting cost advantages to its affiliates run by members of the owner family to further their chances of winning business contracts.
The anti-competitive practices in the market, he said, will be pursued under the broader policy directive in order to restore fair competition underpinned by healthy market principles.
More stringent measures
"A lack of compliance pressure leads to neglectul efforts to innovate and uphold accountability, as laid bare by the recent Kakao fiasco," he said during a press conference at the FTC building in Sejong Government Complex, Monday. It was the first meeting with the press since he took office on Sept. 16.
The remarks were in direct reference to a fire last month that disrupted the 134 services available on the online platform, including KakaoTalk, the country's most popular messenger app.
The role of online platforms has been, he said, limited to enhancing consumer experience and services, mostly through lowering prices of goods and services. However, monopolistic market power and subsequent far-reaching consequences should be revised accordingly.
"The antitrust regulations have not been able to function as an effective tool to keep Kakao in check. FTC policies will outline and implement different approaches that fully factor in characteristics of the online platform," Han said.
The case of Hankook Tire will be treated as an example of illicit corporate gains furthered by the influence and power of large conglomerates, a textbook case of an FTC violation, he said.
"Any illegalities identified in the course of bolstering select affiliates of select conglomerates to the exclusion of other market players will be subject to vigorous investigation for the stringent enforcement of the law," Han said.
The strengthened measures notwithstanding, the antitrust agency under his leadership will continue to remove unnecessary, unclear and outdated regulations to help ensure healthy business activities, effective business planning and market stability.
This in turn will best advance consumer rights and interests, as well as the growth of small and medium-sized enterprises (SMEs), especially in the era of digitization of commerce whereby an increasing volume of commerce will rely on mutual trust without intermediaries.
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