Fair trade attorney, what happens if obstruction of a Fair Trade Commission investigation is found?

The Fair Trade Act, as amended in 2017, was changed to impose criminal penalties where the company under investigation obstructs or refuses the investigation.

In addition, it further strengthened the sanctions, such as by imposing enforcement fines on companies under investigation that do not comply with an order to submit materials.

If materials were deleted or concealed during a Fair Trade Commission investigation, it may be regarded as an act of obstructing the investigation, and even if the employee was not acting on the company's instructions, liability may be imposed on the company, so caution is required.

The levels of punishment for obstruction of a Fair Trade Commission investigation, as prescribed by the Fair Trade Act, are as follows.

Intentionally blocking or delaying entry to the site during an on-site investigation, such as through abusive language or assault

Imprisonment for not more than three years or a fine not exceeding 200 million won

Concealing or destroying materials during an on-site investigation, refusing access, or forging or altering materials

Imprisonment for not more than two years or a fine not exceeding 150 million won

Failure to submit materials or objects, and false submission

Imprisonment for not more than two years or a fine not exceeding 150 million won

In particular, because the Fair Trade Commission possesses equipment and specialized personnel capable of recovering even deleted electronic data, if such circumstances are discovered, they can become even more definite evidence of refusal.

Therefore, if you are facing a Fair Trade Commission on-site investigation, manipulating or concealing materials can instead lead to an unfavorable result, so the help of a fair trade attorney may be needed.

If you are facing an investigation by the Fair Trade Commission, we recommend preparing an appropriate response through a consultation with a fair trade attorney.