Hello, this is attorney Lee Young-kyung of Cheongchul Law Firm.

On 20 August 2026 the National Assembly passed amendments to the Monopoly Regulation and Fair Trade Act (the "Fair Trade Act") and the Fair Transactions in Subcontracting Act (the "Subcontracting Act"). The amendments introduce a duty on the Korea Fair Trade Commission (KFTC) to produce documents in damages litigation, place the complainant's right to request re-investigation on a statutory footing, and rationalise the limitation period for sanctions under the Subcontracting Act. They are expected to change damages litigation practice and the handling of complaints and investigations significantly.

Drawing on extensive experience acting for both companies and the KFTC in advisory, investigation, deliberation and litigation matters, Cheongchul Law Firm sets out the amendments from a practical perspective.

This article is based on the KFTC's press reference materials of 20 August 2026.

The amendments at a glance — three key changes

First, a duty is created for the KFTC to produce case materials to the court in damages actions for breach of the Fair Trade Act or the Subcontracting Act, and the scope of document production orders against parties is widened to cover "materials necessary to prove the violation". Second, where the KFTC decides not to take action on a complaint (a finding of no violation, for example), the complainant may request a re-investigation within 30 days of notification, and that procedure is now set out in statute. Third, where a Subcontracting Act case is referred to dispute mediation, that period is excluded from the limitation period for sanctions, preventing the period from being shortened in practice.

● Passed: 20 August 2026, plenary session of the National Assembly

● Effective: one year after promulgation (following Cabinet approval)

● Statutes amended: Fair Trade Act (Articles 96-2, 110–112 and others) and Subcontracting Act (restructured to apply the Fair Trade Act provisions by reference)

● Three key changes: (i) KFTC duty to produce documents (ii) statutory re-investigation request (iii) rationalised limitation period

● Application: production provisions apply to actions filed after entry into force; re-investigation requests to non-action decisions made after that date; the limitation period to investigations opened after that date

1. KFTC duty to produce documents and wider party production orders

Background — reluctance to produce and the duty of confidentiality

Previously, a company bringing a damages action could ask the court to require the KFTC to transmit the case file, but the KFTC was under no express duty to comply. Producing materials risked breaching the duty of confidentiality under Article 119 of the Fair Trade Act, which prohibits disclosure of business secrets learned in the course of duty. In practice, claimants found it very difficult to use KFTC case materials in damages litigation.

What changes — a duty to produce, subject to four exceptions

Article 110 has been recast as "Production of Materials by the Fair Trade Commission". Where a party shows that it cannot obtain the necessary evidence despite reasonable efforts, the court may require the KFTC to produce the materials. Once case handling is complete, the KFTC must produce them unless one of four exceptions applies:

(i) materials relating to leniency applications;

(ii) materials prepared by the KFTC for investigation or deliberation (excluding materials specified in the decision);

(iii) materials that are non-public under other statutes;

(iv) trade secrets.

Even trade secrets must be produced where the court considers them essential to proving loss or its amount, and the court may then restrict who may inspect them and to what extent. A protective order regime prohibits anyone who learns a trade secret in the proceedings from using or disclosing it for purposes other than the litigation, balancing the claimant's evidential burden against protection of trade secrets. The confidentiality provisions of the Fair Trade Act are also disapplied where materials are produced at the court's request, so that KFTC officials can produce them without exposure.

Wider party production orders — from proving loss to proving the violation

The scope of party production orders under Article 111 has also widened. Previously limited to "materials necessary to prove loss or calculate its amount", it now extends to "materials necessary to prove the violation". The types of damages action covered also expand, from actions concerning improper concerted acts, unfair trade practices (excluding unfair support) and prohibited trade association conduct, to damages actions for Fair Trade Act violations generally.

Applied to the Subcontracting Act by reference

The Subcontracting Act previously contained its own provisions on party production and protective orders in Articles 35-2 to 35-5. Those are now deleted and replaced by reference to Articles 111 to 114 of the Fair Trade Act. The KFTC production duty and the widened party production order therefore apply equally in damages actions for Subcontracting Act violations such as misappropriation of technology or unfair determination or reduction of payment, achieving uniform enforcement.

2. Statutory re-investigation request (new Article 96-2)

Previously, a complainant could seek re-investigation of a non-action decision only through the re-filed case review committee operating under the KFTC's Rules on Case Procedures — a mechanism grounded only in administrative rules. New Article 96-2 places the following procedure in statute:

(i) where the KFTC takes no action following an investigation prompted by a complaint, it notifies the complainant of the reasons in writing;

(ii) the complainant may request re-investigation within 30 days of that notification;

(iii) a review committee composed of official and non-official members considers whether the request is well founded;

(iv) if it is, the re-investigation is conducted by investigators other than those who handled the original case.

Placing the right in statute should strengthen complainants' procedural protection, with the scope and procedure for requests and the composition of the committee to be set by Presidential Decree. Read together with the earlier amendment to the KFTC's Rules on Case Procedures — introducing notification to complainants when an examiner's report is filed and a basis for participating in preliminary hearings — this reflects a step-by-step strengthening of complainants' procedural rights.

3. Rationalised limitation period under the Subcontracting Act

The Subcontracting Act ran the limitation period for corrective orders and fines from the date of the complaint where an investigation was opened on a complaint. There was no provision for cases referred to dispute mediation, so the longer mediation ran, the shorter the effective limitation period became.

Time spent in dispute mediation is now excluded from the calculation, in principle. Where mediation is withdrawn or dismissed, or suspended because proceedings have been filed, that time is exceptionally included, so the period is extended only where valid mediation has taken place. The starting point has also been clarified from the "date of complaint" to the "date of receipt of the complaint", aligning it with Article 72(1) of the Fair Trade Act Enforcement Decree and improving predictability.

4. Summary of the amended provisions

5. Cheongchul Law Firm's competition and subcontracting practice

Cheongchul Law Firm's competition and subcontracting team has extensive advisory, investigation, deliberation and litigation experience acting for both companies and the KFTC across the full range of legislation within the Commission's remit, including the Fair Trade Act, the Subcontracting Act, the Franchise Business Act and the Fair Labeling and Advertising Act.

In summary, these amendments open the way to using KFTC case materials far more widely in damages litigation, strengthen complainants' procedural rights, and rationalise limitation risk arising during subcontracting dispute mediation. With a year until entry into force, companies with damages actions, KFTC complaints or subcontracting mediation either under way or in prospect should begin preparing a strategy aligned with the amended law now. Please contact Cheongchul Law Firm if you need advice on the Fair Trade Act or the Subcontracting Act.