FTC Resumes Judicial and Police Power

The Fair Trade Commission (FTC) is moving again to obtain judicial and police power for investigating collusive business activities, including cartels.

The FTC announced yesterday that it requested the Justice Ministry to revise the ‘law for those who have judicial and police duties and the limit of responsibilities’ to give public officials investigating collusive business activities the right of search and seizure.

“It is impossible to detect collusive business practices, which are becoming more and more sophisticated and skillful, with the current investigation method,” an FTC official emphasized.

In response, a Justice Ministry official said, “Because we are still reviewing, for now, we can’t give a definite answer as to whether the ‘law for those who have judicial and police duties and the limit of responsibilities’ should be amended during the latter half of 2004.”

The Justice Ministry is expected to begin communication with related institutions such as the National Police Agency about the amendment of the law.

The FTC insists that the acquisition of the right of search and seizure will not lead to abuses of that power, not only because the investigated matter is limited to collusive business practices, but because the power is exercised under the control of a prosecutor.

Vesting the FTC with judicial and police power, which the commission had unsuccessfully requested of the Justice Ministry in 2002 and last year, was one of the election pledges of President Roh Moo-hyun.

Chi-Young Shin higgledy@donga.com