Tracking down of accounts to be extended for 2 more years

The Fair Trade Commission's right to demand financial transaction information (tracking accounts), which was to be terminated next February, has been extended for 2 years. Also, staff of companies who deliberately delay or obstruct investigations will be fined up to 50 million won.

The FTC amended its original fair trade bill on Monday and will submit the bill to the National Assembly after receiving approval from the cabinet council.

Policy chief for the FTC, Ju Sun-Sik, revealed that the right to track accounts was originally to be extended for an indefinite period of time in order to enable investigations into chaebol¡¯s illegal internal deals, but a 2 year extension was decided reflecting the opinions of related agencies.

An extension of the investigative right met with vehement opposition as it has contracted corporate activities.

In addition, this policy was also to be applied to disguised affiliates of the chaebols but, taking into consideration the burden it would put on companies, this item was not included in the amendment. The FTC has decided to include disguised affiliates as targets for illegal internal transaction investigations, due to the enhancement of internal transactions through financial institutions and offshore funds.

The scheme to levy 2 million won from companies and 200,000 won from individuals if they refuse to provide information requested during an investigation was not included in the bill. Instead, the penalty amount has been raised from 10 million won to 50 million won.