Competition Law at South Korea
Here’s a detailed overview of Competition Law in South Korea:
🇰🇷 Legal Framework
South Korea’s competition law is governed primarily by the Monopoly Regulation and Fair Trade Act (MRFTA), first enacted in 1980 and amended regularly.
The MRFTA aims to prevent monopolistic practices, promote fair competition, and protect consumer welfare and market efficiency.
🏛️ Enforcement Authority
Korea Fair Trade Commission (KFTC):
The independent regulatory authority responsible for enforcing competition law.
Investigates anti-competitive practices, reviews mergers, and enforces sanctions.
⚖️ Key Provisions
Prohibition of Cartels and Anti-Competitive Agreements:
Price-fixing, bid-rigging, market allocation, and other collusive conduct are strictly prohibited.
Abuse of Dominant Market Position:
Dominant firms are prohibited from engaging in unfair trade practices such as predatory pricing, refusal to deal, or discriminatory pricing.
Merger Control:
Mergers and acquisitions exceeding certain turnover thresholds must be notified to the KFTC and approved before completion.
Unfair Trade Practices:
The Act also addresses unfair business practices like deceptive advertising and unfair subcontracting terms.
🧭 Practical Implications
The KFTC is active and has a reputation for rigorous enforcement, including imposing heavy fines on cartels and dominant firms.
South Korea’s competition law framework is influenced by international standards, with cooperation between the KFTC and global competition authorities.
There is an emphasis on transparency and promoting innovation through competitive markets.
🌐 International Cooperation
South Korea participates in international competition networks, such as the International Competition Network (ICN) and OECD competition committees.
It has cooperation agreements with other jurisdictions, enhancing cross-border enforcement.
📚 Summary
South Korea maintains a strong and well-established competition law regime enforced by the Korea Fair Trade Commission. The law prohibits cartels, abuse of dominance, and regulates mergers to ensure a competitive and fair market environment.
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