Antitrust Law in Korea

Abstract

The article is a general introduction to the antitrust law in Korea, covering, among other things, relevant legislation (the Antimonopoly and Fair Trade Act, or AFTA; Package Clearing Act; Fair Subcontract Transactions Act), the legislative history, the areas of regulation, and the role of the Korea Fair Trade Commission, or KFTC. AFTA, the principal antitrust legislation, was enacted in 1980 and has undergone ten amendments, by which it adapt to the changing needs of the country and economy. KFTC, the principal agency charged with the enforcement of the antitrust laws, from its humble beginning in 1981 as a division of the former Economic Planning Board developed into an independent, ministerial-level agency with semi-judicial powers. The areas of regulation under the Korean antitrust laws divide into regulations of (a) concentration of economic power in such forms as a business combination, business group or holding company, (b) market domination or monopoly, (c) unreasonable concerted actions, including collusion and resale price maintenance, (d) unfair business practices and (e) international trade practices. AFTA or other laws empower KFTC to investigate, adjudicate and penalize violations by meting out corrective measures such as a civil penalty, a cease and desist order, a publication of the fact of violation and any other necessary measure. Criminal liability attaches to certain violations. AFTA also provides for a private cause of action for parties injured by a violation.