The country’s antitrust watchdog said Sunday that it will significantly increase fines for unfair business practices, a move partly aimed at financing the administration’s new policy goals.

However, the Fair Trade Commission said it seeks to increase the amount of money actually collected by lowering fine reduction rates and eliminating or strengthening certain conditions for a reduction, instead of raising the upper limit for fines.

The move comes as the government seeks to further promote fair business practices, especially between large conglomerates and their suppliers.

For instance, the FTC recently raised its overall target for fines on violation of the contract law by 2 percentage points, a move aimed at better protecting subcontractors.

FTC chief Noh Dae-lae has also noted a need to increase the actual amount of fines collected as a way of improving the “effectiveness of administrative penalties.”

Still, the move also comes as the Park Geun-hye administration struggles to find additional financing to implement its campaign pledges.

According to a recently announced set of government measures to implement its campaign pledges, the government plans to increase its non-tax revenue by 300 billion won ($265 million) in 2014 and by a total of 2.7 trillion won over the next four years.

Many believe an increase in the imposition rate, however, may not lead to an increase in the amount collected, at least for some time, as the commission may not retroactively apply its intensified rates to violations committed prior to its decision, and the number of firms violating FTC regulations may actually drop due to strengthened penalties.

“Basically, it is true the FTC has decided to move toward intensifying its imposition of fines, but it is difficult to say if that will lead to an increase in the amount of money collected,” an FTC official said, asking not to be identified. (Yonhap News)