Republic of Korea: Fair Trade Commission closes consultation on proposed amendment to standards for imposition of penalty surcharges on businesses that violate Act on Fair Labelling and Advertising

On 14 April 2026, the Fair Trade Commission (KFTC) closes the consultation on a proposed amendment to the notice on Detailed Standards for Imposition of Penalty Surcharges, etc. on Businesses that Violate the Act on Fair Labelling and Advertising. The amendment forms part of the KFTC Penalty Surcharge System Improvement announced on 30 December 2025 and introduces several structural and substantive changes to the penalty surcharge framework. The imposition standard rate system would be reorganised from a 3-tier to a 4-tier system. Cooperation discounts would be consolidated into a single reduction of up to 10/100, applicable only where the business cooperates throughout the investigation and deliberation stages and admits the facts of the act until the conclusion of the hearing. The maximum mitigation rate for consumer damage compensation would be reduced from 30/100 to 10/100. The mitigation ground for businesses that exercised considerable care to avoid unlawful acts would be deleted. A new provision would permit ex officio cancellation of mitigation where a business reverses statements during litigation proceedings. The amendment is scheduled to enter into force on 1 July 2026.