Corporate watchdog chief calls for tougher penalties for obstructing investigations

SEOUL, Oct. 25 (Yonhap) -- South Korea's antitrust chief on Sunday called for tougher financial penalties against companies that refuse to cooperate with investigations, following a recent dispute involving e-commerce giant Coupang.

Joo Byung-ki, chair of the Fair Trade Commission (FTC), said imposing fines equivalent to 1 percent of a company's total revenue for obstructing investigations would strengthen the watchdog's enforcement powers.

"Imposing a fine equivalent to 1 percent of a company's total revenue for refusing to cooperate with an investigation, rather than a slap on the wrist, would strengthen investigative powers and make law enforcement more effective," Joo said in an interview with public broadcaster KBS.

Joo said the FTC's existing investigative authority was largely sufficient, but stressed the need for tougher penalties against companies that refuse to cooperate.

While some laws enforced by the FTC allow financial penalties and criminal sanctions for obstructing investigations, the Act on Fair Transactions in Large Retail Business provides only for administrative fines.

The legal limitation came to light after the FTC's on-site investigation into Coupang was thwarted in August. A court rejected Coupang's request to suspend the probe last month, prompting the company to appeal.

Joo called for legal revisions to allow heavier financial penalties and enforcement fines in such cases.