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1. Regulatory Insights from the Fair Trade Commission

2. FTC Chairperson Discusses Industry Regulations and Investment

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4. Fair Trade Commission Addresses Conglomerate Investment Concerns

5. Navigating Regulatory Frameworks: Insights from Ju Biung-ghi

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South Korea’s Fair Trade Commission Considers Regulatory Changes Amid Calls for Increased Investment in AI and Semiconductors

Sejong, South Korea — In a significant development for the nation’s economic landscape, the Fair Trade Commission (FTC) has indicated that relaxing the long-standing separation of commerce and finance may be considered as a last resort to meet the demands of conglomerates for increased investment in the rapidly growing AI and semiconductor sectors.

During a press conference held on November 21, FTC Chairperson Ju Biung-ghi emphasized the need for caution in altering regulatory frameworks that have been in place for decades. “Changing this framework simply because of a few individual cases requires extreme caution, as uncertainty in the industry is also strong,” Ju stated. “Any change must have a clear and compelling reason.”

Ju’s remarks come in response to SK Group Chairman Chey Tae-won’s recent calls for regulatory relaxation, which he argues is essential for enabling conglomerates to invest more heavily in high-tech industries. Chey highlighted that the government’s proposed 150 trillion won ($102 billion) National Growth Fund, aimed at bolstering these sectors over the next five years, is insufficient to keep pace with global competition.

Currently, South Korean regulations prevent large corporations from managing financial institutions, such as banks, to mitigate conflicts of interest and reduce systemic risk. However, industry leaders argue that these constraints hinder their ability to raise capital for substantial investments in advanced technologies, unlike their U.S. counterparts who have been able to secure significant funding through financial institutions.

The discussion around regulatory relaxation gained momentum following President Lee Jae Myung’s directive in October to review existing regulations while ensuring safeguards against monopolistic practices. Finance Minister Koo Yun-cheol echoed this sentiment, suggesting that discussions could occur within a framework that preserves the law’s core principles.

“The most important question is how we can stimulate investment in advanced strategic industries,” Ju remarked. “If easing the separation of finance and industry proves necessary as one way to achieve that, we can consider the option.” However, he stressed that companies must take responsibility for their reinvestments to ensure accountability and minimize risks.

Ju also cautioned against the potential for stronger regulatory measures in response to Chey’s comments regarding the Fair Trade Act, which governs companies by size. He noted that South Korea is no longer in an era of rapid growth and that existing regulations should be reinforced to ensure corporate transparency and accountability.

In addition to these discussions, the FTC reaffirmed its commitment to non-discrimination against foreign companies in the upcoming online platform regulations, which have faced criticism from U.S. tech giants like Google, Apple, and Meta. Ju acknowledged ongoing trade-related challenges that complicate progress in this area.

As South Korea navigates the complexities of balancing regulatory frameworks with the need for innovation and investment, the coming months will be critical in determining the future landscape of its high-tech industries.

By Jin Min-ji
[Contact: [email protected]]

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