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as for other jurisdictions, south korea’s enforcement programme is expected to be focussed on restraining the power of chaebol’ conglomerates while also undertaking more rigorous merger reviews. the south korean ministry of fair trade and safety (moftas) has also recently proposed an amended merger review scheme. the proposed changes include, for example, reducing the scope of the review for mergers between companies with turnovers of up to us$2bn from previously proposed us$3bn, and imposing an effective life of 18 months on the reviews instead of the previous five years.

in australia, the australian competition and consumer commission (accc) is expected to increasingly focus its enforcement resources on global infringements. this is due to a number of factors, including the evolution of the accc’s enforcement philosophy, which has now moved away from pursuing enforcement against individual competitors and towards a focus on preventing the companies with the greatest economic and social power from engaging in anti-competitive conduct. furthermore, the accc has also been successful in using its enforcement resources in conjunction with international regulators. over the last decade, the accc has often worked with foreign competition authorities in order to investigate global cartels.

while in the short term, the enforcement landscape is likely to remain relatively static, this may change over time as other jurisdictions in the region such as thailand, malaysia, indonesia, vietnam and cambodia develop enforcement capacities. in the longer term, the enforcement landscape is expected to be fragmented, with new competitors emerging, some of whom may implement more proactive enforcement regimes. the us, in particular, will likely see a relatively high degree of coordination between enforcement authorities, which may see more enforcement activity targeting foreign companies. this is consistent with the changing global enforcement landscape. china’s enforcement effort will continue to expand, and international competition authorities will continue to cooperate to ensure that the enforcement landscape remains relatively stable.

although the china competition law bulletin is only an internal document for mofcom, it raises many important points that should be considered in the review of merger enforcement in china. the document indicates that mofcom is looking at the merits of its enforcement methods and ways to improve its enforcement processes. the bulletin also points to the importance of co-ordinated enforcement efforts across the world. this is particularly important in light of the recent spate of global cartel investigations. competition authorities in asia have been active in anti-cartel cases, and this is likely to continue. it is also important to note that competition authorities in europe, the us and elsewhere are likely to crack down on cartels where there is a local nexus. the cppcc has also expressed interest in reviewing chinese competition law enforcement methods, and has published an open letter to the mofcom and china’s other competition regulators encouraging them to conduct mergers reviews in a way that will not be abused for political reasons.
the consequences of a failure to enforce competition law effectively are not always clear cut. it is therefore important for the kftc to consider this issue carefully, as it will have to review its enforcement methods and determine whether they are working to achieve its policy objectives. of course, it will be important for the kftc to be consistent in its enforcement methods and ensure that they are not abused for political purposes. however, a failure to enforce competition law would be likely to have significant adverse economic, social and ethical consequences in south korea.
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