Competition law

The competition law (경쟁법/競爭法) or the fair trade act (공정거래법/公正去來法) is well established and enforced in Korea in line with the global standard. The Monopoly Regulation and Fair Trade Act (the "Act") was enacted in 1981 to promote free competition and fair trade.

Key words
global standard, fair competition, anti-trust, concentration of economic power, creative business activity

Purpose of the Act
The purpose of the Act is to promote free and fair competition, as well as to prevent the concentration of economic power.

Its ultimate objectives, however, are the stimulation of creative business activities, consumer protection, and the promotion of the balanced development of the national economy.

The Act contains substantive regulations on monopolies and oligopolies, mergers, anti-competitive collaborative acts, unfair trade practices, leniency program, etc.

Enforcement of the Act
The Act also has established a regulatory agency, the Fair Trade Commission (KFTC), and puts in place enforcement procedures.

On December 2, 2011, the Act was amended by Act No.11112 as a part FTA implementing legislation, which will be effective at the same time as the KorUS FTA. Again in March 2012, the Act was newly amended and comes into force on June 22, 2012.

Effects of FTA on the Act
In accordance with the KorUS FTA, the consent resolution has been introduced to the Competition regime with its procedure and other related measures. This new mechanism is to meet the quickly changing market circumstances, and to help secure remedy for consumers and restore competitive environment in the market.

The newly inserted provisions of the Act are as follows:
 * Article 51-2. Consent resolution (동의의결)
 * When a business entity applies for corrective measures for voluntary reduction of anti-competitive practices currently under KFTC's investigation, and remedy for consumers, KFTC may stay the relevant investigation process and make a consent resolution in line with the corrective measures.


 * Article 51-3. Consent resolution procedure
 * Prior to the consent resolution, KFTC shall allow for a period of more than 30 days to collect opinions from the stakeholders, and consult the Public Prosecutor General.

KFTC may revoke the consent resolution if the Applicant fails to perform KFTC's consent resolution, and impose the enforcement fine (이행강제금) of less than 2 million won per day until the day of performance or revocation of the said consent resolution against the person who fails to perform KFTC's consent resolution.
 * Articles 51-4, 51-5, Ex post Consent resolution

2012 Amendmdnt to the Act
The amendments include, among others, the imposition of criminal sanctions for obstruction of ivestigtion by use of physical force, and the extension of stattory limitation periods for KFTC investigations. The amendments are expected to have signifcant impact on corporations.
 * Criminal sanctions for obstruction of KFTC investigation by use of physical force. Art. 66 Item 11.
 * Extension of statutory limitation periods for commencement of KFTC investigations. Art. 49.
 * Joint liability for adminstrative surchage after corporate split. Art. 55-3.
 * Maximum surcharge amount increased up to 10% of relevant revenues for Cartels through trade association. Art. 28(2).

Competition cases
See Competition cases.