The Korea Fair Trade Commission (KFTC), South Korea’s antitrust watchdog, will undergo a structural overhaul under the new government’s initiative to strengthen its investigative functions.

Government sources said on Monday that the new Lee Jae-myung administration’s transition committee has internally drafted a restructuring plan for the KFTC. Key elements include reintegrating its investigative and policy arms, which were split two years ago, as well as opening a new bureau of economic analysis to support enforcement and policymaking. The government is also considering elevating the watchdog’s status to that of a core economic agency following Lee’s directive to increase staffing shortly after he took office.

The goal aims to build a strategic foundation that supports both investigations and policy through enhanced economic analysis, particularly in response to the growing complexity of cases involving platform companies. “A systematic economic analysis capacity is essential to reinforce investigative functions,” a government official said.

The plan also includes increasing the number of standing commissioners, who hear and decide KFTC cases, from three to four as well as expanding the agency’s overall headcount. Discussions are underway to shift the KFTC’s jurisdiction from the Prime Minister’s Office to the President’s Office. The transition committee will finalize the overhaul through further consultation with the commission.

Since the KFTC’s 2023 reorganization - its first in 33 years - concerns have mounted over weakened investigative capacity. The restructuring, which aimed to bolster expertise and accountability, instead led to reduced collaboration and inefficient staffing. Policy staff previously supported investigations, for example, but the separation of roles has intensified chronic manpower shortages.

Case processing delays have worsened. The proportion of cases exceeding the statutory time limit rose from 16.5 percent in 2018 to 29.6 percent in 2023 to hit 36 percent by August 2024. The number of cases processed annually fell from over 3,000 to around 2,000 after the reorganization.

Meanwhile, KFTC sanctions have faced growing judicial resistance. The Seoul High Court overturned a 27.1 billion won ($20 million) fine imposed on Kakao Mobility Corp. over alleged ride allocation favoritism in May 2025 while also canceling 36.5 billion won of a 60.8 billion won fine levied on Hoban Construction Co. for unfairly supporting an affiliate through public land transactions in March of that year.

The KFTC began reviewing staffing needs following Lee’s directive at his first Cabinet meeting on Thursday. “An internal review is underway to identify priority areas for additional hiring and determine the appropriate scale of expansion,” a commission official said, adding that a formal staffing plan will be developed in coordination with related agencies. The KFTC is expected to prioritize strengthening its investigative workforce to accelerate case processing. With 647 employees, the KFTC currently ranks 19th among 27 central government agencies by size.

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