Fair practices

Fair practices (공정거래관행) mean business practices conducted in good faith on a competitive basis. Nowadays in Korea, fair practice standards are established by the Korea Fair Trade Commission (KFTC). KFTC has implemented a number of regulations and guidelines as listed below by business sector.

Best practice is defined as a process of developing and following a standard way of doing things that majoirty of market players can use. In that best practice is used to maintain quality as an alternative to mandatory legislated standards and to preserve standards for self-assessment or benchmarking. Fair practices are different from best practice in that fair practices are in writing, and of a mandatory nature. In case of violation, sanctions shall be imposed.

Key words
fair practice, business practices, Fair Trade Commission, mandatory

Fair Business Practice Standards
In principle, the fair business practice standards are stipulated in the Monopoly Regulation And Fair Trade Act (독점규제 및 공정거래에 관한 법률) and its Enforcement Decree.

The subordinate regulations and guidelines, among others, are listed below:
 * Guidelines for review of the abuse of market dominant position (시장지배적지위남용행위 심사기준)
 * Guidelines for M&A Review (기업결합 심사기준)
 * Guidelines for M&A Notification (기업결합의 신고요령)
 * Guidelines for Cartel Review (공동행위심사기준)
 * Notification on Implementation of Cartel Leniency Program (부당한 공동행위 자진신고자 등에 대한 시정조치 등 감면제도 운영고시)
 * Guidelines for Review of Resale Price Maintenance (재판매가격유지행위 심사지침)
 * Guidelines for Review of Unfair Trade Practices (불공정거래행위 심사지침)
 * Rules on the FTC's Committee Operation and Case Handling Procedure, etc. (공정거래위원회 회의운영 및 사건절차 등에 관한 규칙)
 * Guidelines on the Submission of Economic Analysis Evidence (경제분석 증거 제출에 관한 지침)
 * Review Guidelines on Undue Exercise of Intellectual Property Rights (지식재산권의 부당한 행사에 대한 심사지침)
 * Guidelines for M&A Remedies (기업결합 관련 시정조치 불이행에 따른 이행강제금 부과기준)

Framework Act on Consumers

 * Enforcement Decree of the Framework Act on Consumers (소비자기본법 시행령)
 * Product Liability Act (제조물책임법)
 * Consumer's Cooperative Union Act (소비자생활협동조합법) and its Enforcement Decree
 * Fair Labelling and Advertising Act (표시광고의 공정화에 관한 법률) and its Enforcement Decree

Act on Consumer Protection in Electronic Commerce, etc.

 * Enforcement Decree of the Act on the Consumer Protection in Electronic Commerce, etc. (전자상거래 등에서의 소비자보호에 관한 법률)
 * Door-to-Door Sales, etc. Act (방문판매 등에 관한 법률) and its Enforcement Decree
 * Installment Transactions Act (할부거래에 관한 법률) and its Enforcement Decree
 * Regulation of Adhesion Contract Act (약관의 규제에 관한 법률) and its Enforcement Decree

Fair Franchise Transactions Act

 * Enforcement Decree of the Fair Franchise Transactions Act (가맹사업거래의 공정화에 관한 법률)
 * Fair Subcontract Transactions Act (하도급거래 공정화에 관한 법률) and its Enforcement Decree