The Cabinet announced Friday that the revised Antimonopoly Law, with tougher penalties for violators, will take effect Jan. 4.
While stiffening the penalties for such illegal practices as rigging bids and forming cartels, the law also states that the first company to come forward and admit to illegal activity before the Fair Trade Commission launches a probe will be exempt from punitive surcharges.
Individuals, including executives, at those firms will also be exempt from FTC criminal accusations.
Surcharges on large manufacturers that violate the Antimonopoly Law will be raised to 10 percent on sales of products involved in the illegal activity from 6 percent. Surcharges on small and medium-size manufacturers will increase to 4 percent from 3 percent. Surcharges on large retailers will rise to 3 percent from 2 percent.
The first company to admit to illegal activity will not be charged, and surcharges will be cut by 50 percent for the second company that comes forward in the same case and by 30 percent for the third.
The FTC also announced Friday it would also not seek criminal punishment for companies that are the first to come clean.
Under the revised law, the FTC will be given the authority to conduct investigations and and obtain court-issued warrants to make raids to seize goods and property.
The FTC said it would actively file criminal accusations in cases where there are repeat violations.