South Korea’s Fair Trade Commission (KFTC) is grappling with criticism as courts nullify punitive measures taken against companies under the previous Moon Jae-in administration. The backlash intensifies as industry officials reveal the KFTC’s losses in multiple lawsuits, raising questions about the fairness and legality of its actions.
Recent Court Rulings: Last Thursday, the Seoul High Court delivered a blow to the KFTC by nullifying a 3.4 billion won ($2.5 million) fine imposed on Taiwan’s Evergreen. The fine, alleging 15 years of collusion in fixing freight rates, was contested for undermining collaborative actions allowed under international law.
In the same vein, a combined 96.2 billion won in fines on 11 foreign shipping firms and 12 Korean companies faces scrutiny. The Ministry of Oceans and Fisheries challenges these penalties, arguing against the prohibition of collaborative actions permitted by international law.
Read more: South Korea’s Antitrust Watchdog Probes K-Pop Agencies
Impact on Companies: Industry insiders express concerns over the KFTC’s sanctions tarnishing the brand images of Korean companies and inflicting substantial legal expenses. Korea Shipowners’ Association Vice Chairman Yang Chang-ho states that the court rulings have corrected the KFTC’s mistakes and justified the collaborative actions maintained for four decades.
Notable Cases: Further setbacks for the KFTC include the nullification of a 3.3 billion won fine on Coupang for discouraging supplier discounts on other online shopping platforms. SPC Group also succeeded in a lawsuit, reclaiming 64.7 billion won in fines imposed in 2020 for alleged illegal financial support.
On January 24, the court nullified a combined 1.6 billion won fine on SK Group Chairman Chey Tae-won and his company for allegations related to share acquisition hindering new business opportunities.
Source: Korea Times
Featured News
Mexico Moves Forward with Reform to Eliminate Key Regulators, Including Competition Watchdog
Aug 23, 2024 by
CPI
DOJ Sues RealPage for Alleged Rent-Fixing Scheme Using AI Software
Aug 23, 2024 by
CPI
Advance Auto Parts to Offload Worldpac for $1.5 Billion
Aug 22, 2024 by
CPI
Bronfman Ups Ante to $6 Billion in Paramount Battle, Skydance Deal at Risk
Aug 22, 2024 by
CPI
Google and California Strike Historic Deal to Fund Newsrooms Amid Controversy
Aug 22, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich