The Fair Trade Commission plans to launch a probe into the nation’s franchise business sector in the first quarter next year, starting with cosmetics shops in downtown areas that are sprouting recently due to soaring demand from Asian tourists.

“We will look into the franchise sector as many retired people are seeking to start a new business and such trend is spreading to younger generations,” FTC chairman Kim Dong-soo told reporters on Friday.

“As soon as we complete our investigation into convenience stores within the year, we are considering launching a probe into cosmetics stores whose number is estimated to hover around 3,000-4,000 currently.”

Together with the investigation, the state-run antitrust watchdog will also adopt a voluntary fair trade program, which offers incentives to businesses that abide by related rules voluntarily, for the franchise sector, Kim said.

He added that oversight of online shopping malls will be toughened from December as complaints have been reported that some vendors are misleading consumers through exaggerated ads. A set of new guidelines is also scheduled to be announced next year.

Kim, rounding up the FTC’s activities this year, stressed bigger role for the agency under the upcoming new administration.

“Due to a lack of personnel, we had to focus more on mid-sized companies and retail issues this year. The new government needs to consider expanding the agency’s structure and personnel,” he said.

By Lee Ji-yoon (jylee@heraldcorp.com)