The Amendment Notice will likely increase the fines imposed by the Fair Trade Commission. Prior to the Amendment Notice violations of the Monopoly Regulation and Fair Trade Act would result in lower fines than that authorized by Korean Monopoly Law. The change will, likely, substantially increase the fines.
INCREASE IN FINES FOR UNFAIR TRADE PRACTICE AND ABUSE OF DOMINANCE IN MARKET
The Amendment Notice will likely increase fines for Abuse of a Companies Dominant Market Position in Korea from 2 % to 3% of revenues earned because of the violation. Additionally,the fine will be increased from 1% to 2% of the revenue earned because of violation of the catch-all unfair trade practice prohibition.
AGGRAVATION OF FINES FOR OBSTRUCTION OF INVESTIGATIONS
The fine may be increased by 40% for the physical obstruction of an on-site investigation through violence or use of force; 30% increase for obstructing an on-site inspection through concealing, destroying or falsifying records; and 20% increase for other acts of obstruction.
Korea's Fair Trade Commission has been very proactive in its enforcement of Korea's Antitrust laws and it is advisable to have an attorney conduct a compliance audit to determine and assist in mediating your risk of an investigation, fine and criminal punishment for violation of Korea's Monopoly Regulation and Fair Trade Act and related laws.
Additionally posts on Korea's Antitrust/Competition law may be found at:
- Four Oil Companies in Korea Fined for Price Fixing
- The FTC of Korea: All Bark and No Bite?
- Defining the Relevant Market in Korea
- Korea's Antitrust Evolution in Korea. Sean Hayes in Korea Times
- Antitrust/Competition Law Consent Orders in Korea
IPG is engaged in projects for companies and entrepreneurs doing business in Bangladesh, Cambodia, China, Korea, Laos, the Philippines, Myanmar, Vietnam and the U.S.