'Economic Penalty'-Level Fines of Tens of Billions of Won···How Companies Can Respond to Increasingly Sophisticated Collusion Regulation

Interview with Attorneys Yoon Kyung-won and Jang Ji-woon of Daeryun Law Firm
- Report first and get your fine waived?···"An unprepared voluntary report is poison that solidifies the charges"
- Forensics that fully restore messenger conversations···"Rash statements and responses on the first day of an on-site investigation change the course"

As the Fair Trade Commission (FTC) intensifies its regulation of collusion, the importance of managing fair trade risk for companies is growing. The fines for 82 cases announced by the FTC in the first half of 2026 totaled 1.7502 trillion won, surpassing the previous annual record of 1.3308 trillion won set in 2017 in just half a year. This is largely due to the recent sharp increase in the standard fine rate for collusion from the previous 0.5-3.0% to 10.0-15.0%, and the 3.0-10.5% bracket to 15.0-18.0%.

Accordingly, interest in investigation response and building preemptive compliance management systems is greater than ever in the corporate field. We met with Attorneys Yoon Kyung-won and Jang Ji-woon, who handle corporate law and fair trade matters at Daeryun Law Firm's main office in Seoul, to hear about strategies for responding to collusion risk.

Attorney Yoon Kyung-won cited 'advanced on-site investigations and digital forensics' as the biggest feature of recent FTC investigations. Attorney Yoon warned, "Moving beyond the detection of organized collusion centered on large corporations, the surveillance net has now become so tight that even casual conversations in internal messengers or emails are restored through forensics and used as circumstantial evidence," and "In particular, when startled executives and employees attempt to hide computers or delete data during an unannounced on-site investigation, this is regarded as clear obstruction of the investigation and can lead to criminal referral to the prosecution on top of fines in the tens of billions of won."

He went on to emphasize, "Accurately confirming the targets and scope specified in the investigation warrant, and lawfully blocking excessive demands for data—this close defense on the first day of the investigation determines the company's future."

In such crisis situations, the first defensive measure companies think of is the so-called 'leniency' (leniency, the voluntary reporter reduction/exemption program). However, Attorney Jang Ji-woon pointed out companies' common misconceptions about leniency. Attorney Jang explained, "Companies often think 'if we just voluntarily report before our competitors, we can avoid the fine,' but that is not the reality," adding, "Out of fear that a competitor might report first, if a company hastily applies for leniency with incomplete evidence, it may end up merely solidifying its own charges without receiving any reduction benefit."

Furthermore, Attorney Jang Ji-woon advised, "You must approach this strategically by comprehensively reviewing the level of evidence secured by the authorities and the moves of competitors," and "Moreover, the system is recently being reformed so that when a company that has received a reduction benefit or has a prior record of sanctions colludes again, the period during which reductions are restricted is being extended from 5 to 10 years and the reduction margin is being cut in half. So the complacent approach of 'just report first and see what happens' can invite even greater risk down the road."

What should be examined even more closely is the 'chain risk' that follows an FTC disposition. Attorney Yoon Kyung-won pointed out, "You cannot be relieved thinking everything is over once the fine is paid," and "If collusion is confirmed, a company can be restricted from bidding on public projects ordered by the state or local governments for up to 2 years, and its core sales channel can be blocked overnight."

He also warned, "In practice, immediately after the disposition, public ordering agencies mechanically claim enormous compensation separate from the fine based on the 'estimated damages' clause in the contract, triggering a secondary liquidity crisis," and "Most fatally, after the fine is paid, activist funds or minority shareholders file shareholder derivative suits against management, claiming they 'caused damage to the company by directing or abetting collusion,' and cases are even arising where the owner's personal assets are provisionally seized."

Given the wide-ranging impact, Attorney Jang added that the fundamental solution to collusion crises lies not in after-the-fact cleanup but in prevention. He said, "Even routine information exchanges among employees or casual meals can become the seed of an unfair collaborative act," and "Corporate management must preemptively advance internal compliance monitoring systems and, through regular training, remove risk factors that have taken root within the company at an early stage."

In closing, the two attorneys reiterated the weight of the initial response, noting the special nature of FTC investigations. Attorney Jang advised, "Collusion cases are a complex risk connected not only to the scale of the fine but also to corporate image, business relationships, and management liability," and "Companies must move away from responding after a problem arises and instead build a culture of competition-law compliance in normal times and prepare a response manual for investigation situations." Attorney Yoon also emphasized, "FTC investigations are a specialized field where economic analysis and legal judgment take place simultaneously," and "Accurate legal review and strategic response must take place from the on-site investigation stage to minimize unnecessary risk."

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