Abstract

Through examples of unfair trade practices and exploitation of private interests by airlines, we tried to derive the Fair Trade Commission's regulatory measures. To this end, the legislation and major requirements for regulating airline companies' unfair trade practices and exploitation of private interests were reviewed, focusing on the illegal cases of Korean Air and Asiana Airlines.
 First, the Fair Trade Act required even subsidiaries to be regulated for unfair trade practices and exploitation of private interests. There have been cases where airlines have evaded regulations on unfair trade practices and exploitation of private interests by establishing subsidiaries through physical division, etc. Accordingly, it is necessary to expand regulations not only to subsidiaries but also to sub-subsidiaries, etc. In this regard, it is necessary to re-examine the internal control system, hold accountability in case of loss of penalty or loss of compensation due to loss of damages, and demand measures to prevent recurrence.
 Second, the 20% standard in the current Fair Trade Act is based on the total number of issued stocks, so companies with a significant number of treasury stocks may be excluded from unfair trade practices and exploitation of profits regardless of the intention of the Fair Trade Commission. Therefore, it is also necessary to consider calculating the share ratio, excluding treasury shares as the standard for issued shares.
 Third, looking at the judgments related to unfair trade practices and exploitation of Korean Air, we come to the conclusion that small-scale unfair trade practices and fraudulent acts cannot be regulated under Article 23-2 of the Fair Trade Act. Therefore, it is necessary to further clarify the concept of unfair profits in the Fair Trade Act with the active attitude of the judiciary.
 Fourth, the current Fair Trade Act does not directly or indirectly hold shares in the same person as in the Kumho Asiana Group, but unfair trade practices and exploitation of private interests by affiliates controlled through public service corporations are not subject to regulation. Therefore, it is necessary to prepare legal measures for ownership stake and actual control.

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