Due to the risk of transaction suspension, etc., it is not easy for an agency to report a suspected violation of the Fair Agency Transactions Act by a supplier. Also, for the Fair Trade Commission to quickly recognize suspected violations and fully substantiate the unlawfulness thereof, former and current executives and employees or other stakeholders who have insider knowledge need to actively provide relevant information or present evidentiary materials.

Accordingly, the Amendment provides grounds on which to pay a reward, within budgetary limits, to a person who makes a report, provides information or presents relevant evidentiary materials on any violation of the Act; and also stipulates that a monetary reward that has been unduly paid shall be restituted (Article 26-2 newly inserted).

In line with other related Acts such as the Fair Transactions in Subcontracting Act, Act on Fair Transactions in Large Franchise and Retail Business, and Fair Transactions in Franchise Business Act, the Amendment also stipulates that the Fair Trade Commission shall conduct fact-finding surveys in written form on trade between a supplier and agencies and publish the results thereof in order to encourage suppliers themselves to improve the trading order for agencies (Article 27-2 newly inserted).

In addition, the Amendment imposes an administrative fine on any supplier or the executive thereof, etc., who fails to submit relevant data(Article 32, paragraph 1, subparagraph 6 newly inserted and Article 32, paragraph 2), and prohibits suppliers from taking retaliatory actions against any agency on account of cooperating with a written fact-finding survey (Article 12, subparagraph 4 newly inserted), thereby ensuring the successful implementation of written fact-finding surveys and the reliability of submitted information.

Suppliers shall not suspend transactions, reduce quantities, or take any other unfavorable action against an agency that has cooperated with a written fact-finding survey conducted by the Fair Trade Commission under Article 27-2, or cause his/her affiliated company or any other business entity to engage in such conduct (Article 12).

Where a person has received a reward by such improper means as collecting evidence by unlawful or unfair means, filing a false report or statement, or forging evidence, or where any of the other following facts is found after the Fair Trade Commission has paid a reward to a person who made a report or provided information on any violation of this Act and also presented relevant evidentiary materials, the Commission shall give notice of the amount to be restituted to the recipient of the reward, and such recipient shall pay the amount within 30 days after receipt of the notice (Article 26-2).

Where the Fair Trade Commission intends to conduct a written fact-finding survey, it shall formulate a plan concerning such matters as the scope of persons subject to the survey; the period, details, method, and procedure of the survey; and scope of publication of survey results. It may request the persons subject to the survey to submit transaction data and other information necessary for the survey (Article 27-2).

Where a supplier fails to submit the information pursuant to Article 27-2, paragraph 2 or submits false information, he/she shall be subject to an administrative fine of up to 20 million won. Where an executive, employee, or other stakeholder of a supplier fails to submit the information pursuant to Article 27-2, paragraph 2 or submits false information, he or she shall be subject to an administrative fine of up to 5 million won (Article 32).