The penalty surcharge is defined as a device against a violater of law to compel performance of a duty indirectly by deprivation of the business profits caused by violation of the administrative law.
The Fair Trade Commission imposes a punitive surcharge on enterprisers' violation of the regulations such as abusive acts by a market-dominating enterpriser, prohibition of new debt guarantee for affiliated domestic company, restrictions on resale price maintenance, prohibition of cartel, prohibiton of unfair trade practices on Monopoly Regulation and Fair Trade Act. The surcharges may impose an enterpriser within the range not exceeding the multiplying 2~10% of the turnover determined by Presidential Decree.
But liability for damages with no fault for consumers damaged from enterpriser, criminal punishment and corrective measure can be done at the same time. In addition, the criticism that the possibilities of double jeopardy or surplusage regulations of legal violations may be given has been raised.
This paper examines the legal characterization of the penalty surcharges as the means of securing social fairness and inhibition of violative acts. And then we should seek transparency and fairness of surcharge imposition system of violations against the Monopoly Regulation and Fair Trade Act.