Korean Air Fine Cut 94% by FTC Sparks Debate Over Enforcement Decree Limits

South Korea’s Fair Trade Commission is facing debate after it sharply reduced a compliance fine imposed on Korean Air for failing to meet merger remedy obligations. The case concerned the carrier’s duty not to cut seat supply on the Incheon-Frankfurt route. Under the enforcement decree formula, the amount was calculated at 98.09 billion won. After a 40% reduction, it stood at 58.86 billion won, but the final penalty was set at 5.89 billion won. The total reduction was about 94%. The controversy centers on whether the FTC relied on a lower-level notice to reach a result different from the amount set by the higher enforcement decree, making predictability of future sanctions a key issue. Source: yna.co.kr