On December 19, 2025, the Korea Fair Trade Commission (hereinafter “the KFTC”) delivered a presidential briefing titled “Evaluation of 2025 achievements and areas for improvement and future work directions.”
The KFTC announced it will actively strengthen enforcement of competition‑related regulations, backed by an unprecedented large-scale increase in personnel and reforms to the administrative fines regime. In particular, the KFTC is expected to step up inspections and investigations into violations of regulations governing large conglomerates, especially in traditional power-imbalanced (“Gap-Eul”) sectors such as subcontracting, franchising, and distribution; sectors closely related to people’s livelihoods; the digital platform market; and unfair intra‑group transactions. Therefore, to mitigate regulatory risk, companies are advised to proactively familiarize themselves with the KFTC’s new and forthcoming rules and inspection priorities, assess potential operational impacts, and strengthen preemptive reviews and voluntary compliance programs.
In its briefing, the KFTC highlighted the following main achievements for 2025: (i) implementing comprehensive measures to resolve core management difficulties faced by small and medium-sized enterprises (“SMEs”) and small business owners; (ii) reducing burdens on people’s livelihoods and strengthening consumer rights protection; and (iii) sanctioning unfair practices by large business groups that hinder innovation and competition, while reforming regulations that restricted competition.
For 2026, the KFTC set out the following key initiatives: (i) remedying power imbalances between large and small enterprises; (ii) promoting fair competition in sectors closely related to people’s livelihoods; (iii) fostering an innovation ecosystem in digital markets; and (iv) strengthening governance of large business groups and reforming incentive systems. In order to ensure that these initiatives are carried out effectively, the KFTC will enhance the speed and transparency of case handling[1] and increase the effectiveness of economic sanctions[2].
Key details of the KFTC’s 2026 key initiatives are as follows.
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1. |
Remedy Power Imbalances Between Large and Small Enterprises
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2. |
Promote Fair Competition in Sectors Closely Related to People’s Livelihoods |
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3. |
Foster an Innovation Ecosystem in Digital Markets |
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4. |
Strengthen Governance of Large Business Groups and Reform Incentive Systems |
[1] Measures to improve case handling include a staff increase (167 new positions), establishment of a new regional office in Gyeongin, a dedicated complaints‑handling team, a rapid‑response team for major cases, and operation of an emergency deliberation system; and enhancing complainants’ procedural rights and right to be informed by legislating appeal procedures and expanding opportunities to be heard.
[2] The administrative fines system will be comprehensively reformed by strengthening fines for repeat violations, redefining the thresholds for seriousness, and raising the cap on fines.




