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The three industrial revolutions so far have been recognized as the process of replacing human labor with machines, namely automation. In contrast, the forthcoming industrial revolution is the time to replace the human brain with artificial intelligence. The fourth industrial revolution is expected to be a turning point that will bring about significant changes in the social economy, resulting in variety of optimistic anticipations and pessimistic concerns.

The South Korean government is rushing to prepare number of measures, policies and plans at the government level for various changes brought about by the fourth industrial revolution. In the field of competition law, the Korea Fair Trade Commission (“KFTC”) emphasizes the “establishment of an industrial ecosystem that promotes innovative competition” and focuses on developing policies for the fourth industrial revolution. This is one of the priorities of KFTC’s five major corporate policies in 2019.

In the age of the fourth industrial revolution, competition laws are at a crossroads between adhering to the principles and frameworks of traditional competition law analysis and adopting additional elements from other legal fields. In recent years, active discussions and studies have been conducted on factors that pose a new threat to the existing economic system and what legal solutions can be proposed.

Against this backdrop, the KFTC submitted a revised bill in November 2018, aiming to modernize the competition law suitable for the Fourth Industrial Revolution. The revision will establish an innovative ecosystem and enhance the ability of new industries to promote. Many bills proposed by lawmakers have also been submitted. It is meaningful that the standards for reviewing business combinations, including the government submission, will be formulated only after the preliminary examination and preparation process. After the fourth industrial revolution, a new type and means of limiting competition emerged. Analyzing these phenomena and coming up with measures to improve the Fair Trade Act can be seen as preparation for implementing appropriate follow-up regulations based on the understanding of new industries in the Fourth Industrial Revolution. Such legal efforts, preemptive and innovative market analysis and efforts to promote competition should continue. As a result, free and fair competition, the ultimate goal of competition law, can be expected to promote innovation thereafter, and a virtuous cycle of smooth operation of new markets can be accomplished.