KFTC Announces Amendments to Case Procedure Rules and Consent Decree Rules

The Korea Fair Trade Commission (the “KFTC”) announced amendments to the Rules on the Operation of KFTC Hearings and Case Procedures (the “Case Procedure Rules”) and the Rules on the Operation and Procedures of the Consent Decree System (the “Consent Decree Rules”), effective as of December 31, 2025.

The amendments to the Case Procedure Rules (the “Amendment”) are intended to expedite and improve the efficiency of the KFTC’s case handling process and to strengthen the respondents’ rights of defense by (i) expanding the scope of cases which the KFTC’s case examiners can conclude with a warning, (ii) expanding the scope of cases eligible for written deliberation (i.e., without a hearing), and (iii) extending the deadline for respondents to submit responses to examiner’s reports.

The amendments to the Consent Decree Rules have been finalized based on the draft released in November 2025 for public comments, effective as of December 31, 2025. For details, please refer to our prior newsletter(Link).

1.	The Amendment

(1)

Expansion of cases eligible for case handler-issued warning decisions

In KFTC proceedings, administrative sanctions, such as administrative fines and corrective orders, can be proposed by the Case Examiner and are imposed following a hearing before the KFTC Commissioners. If a violation is deemed minor and applicable thresholds are met, the Examiners may at their discretion, issue a warning without pursuing further (e.g., monetary) sanctions.

For cases eligible for Examiner-issued warnings, the KFTC has lowered the relevant revenue thresholds by up to 40%. The Amendment has also newly established a legal basis to allow Examiners to issue warnings for violations of certain reporting/submission obligations (see table below). In addition, if a cartel case is eligible for an Examiner-issued warning, any leniency applications submitted in relation to that case may also be processed at the discretion of the Examiner. In sum, the Amendment effectively expands the scope of cases that can be resolved through the Examiner’s discretionary warnings, rather than KFTC Commissioners’ hearings and deliberations.

	Cases in which KFTC Examiners may exercise discretion to issue warnings
Conduct	Current Provision	Amendment
Cartels and Bid‑riggings	If the contract amount of the bid subject to the violation is less than KRW 40 billion for construction bids, or less than KRW 4 billion for other bids	The contract amount of the bid in violation is under KRW 50 billion for construction bids or under KRW 5 billion for other bids
Unfair Trade Practices	If the annual sales of the respondent are less than KRW 7.5 billion	If the annual sales of the respondent are less than KRW 10 billion
Concentration of Economic Power	None	In case of violating the reporting obligations related to holding companies, if the foreseeability and severity of the violation are deemed minor, and voluntary reporting is made within 30 days after the reporting deadline
Violations of the Large-Scale Retail Business Act	If the number of suppliers subject to the violation is fewer than 20 and the amount subject to the violation is less than KRW 50 million (if the violation amount is difficult to calculate, then where the annual sales of the respondent are less than KRW 300 billion)	If the number of suppliers subject to the violation is fewer than 20 and the amount subject to the violation is less than KRW 70 million (if the violation amount is difficult to calculate, then where the annual sales of the respondent are less than KRW 400 billion)
Violations of the Fairness in Subcontracting Transactions Act	If the annual sales of the respondent are less than KRW 15 billion	If the annual sales of the respondent are less than KRW 20 billion
Violations of the Fairness in Franchising Transactions Act	If the annual sales of the respondent are less than KRW 1.5 billion	If the annual sales of the respondent are less than KRW 2 billion

(2)

Expansion of cases eligible for written deliberation

The eligibility for the KFTC’s summary resolution (i.e., written deliberation without commission hearings) is determined based on the amount of fine that is expected to be imposed in the case. The Amendment revises this threshold from a maximum expected fine of “KRW 300 million or less” to “KRW 1 billion or less”. Accordingly, if the eligibility threshold is met and the respondent admits to the violation, and does not wish the case to go to the hearing, the case can be deliberated by the KFTC Commissioners in writing without holding a hearing.

(3)

Procedures for allowing respondents to provide opinions during a hearing process through video conference

If a respondent has difficulty appearing in person at a KFTC hearing room due to issues such as difficulties in traveling to the KFTC, the Amendment will allow conducting the opinion-hearing procedure using video conference.

(4)

Extension of the deadline for submitting responses to an examiner’s report

The deadline for the respondent’s submission of a written response to the examination report has been extended: For cases subject to a plenary hearing, from 4 weeks to 8 weeks and for cases subject to a subcommittee hearing, from 3 weeks to 6 weeks. In addition, if the hearing results in an order for re examination, the KFTC must notify the respondent in writing of that fact and the reasons for it.

Implications

The Amendment, together with increased KFTC workforce, is expected to lead to more efficient KFTC case handling by enabling greater use of discretionary warnings and written deliberations. Companies are advised to develop their response strategies from early stages of a case in light of the revised standards.

[Korean Version]

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