Common Questions and Answers/Republic of Korea

Common Questions and Answers

Republic of Korea

Principal Laws

1. Firstly, what are the principal laws which are aimed at the protection of competition in your country?
(Please attach copies of competition laws, in English translation if available. This will help us as a reference at the analysis stage. It will also allow you to simply refer to the particular provisions of these laws in the following questions.)
Monopoly Regulation and Fair Trade Act(hereinafter the Act) Fair Subcontract Trade Act
Regulation of Standardized Contracts Act

Principal Agencies

2. Now, we are interested in the principal agencies involved in the enforcement and administration of your competition laws. What are the respective roles of the principal agencies involved in enforcement of the law?

2A. Head of State
Appoints Chairman, Vice-chairman and Commissioners of the Fair Trade Commission
proclaims, Presidential Decree to implement the Fair Trade Act

2B. Government/relevant ministers
The Fair Trade Commision has been established under the jurisdiction of the Prime Minister for the purpose of accomplishing the objectives of the Fair Trade Acts

2C. Courts
The Seoul High Court has an exclusive jurisdiction over the appeal of the Commission's decision. The Supreme Court makes the final decision regarding appeals of dissatisfaction

2D. Competition agencies
Please specify the their names and roles
Names of the principal agencies involved in the enforcement or administration of your competition law : Fair Trade Commision Roles of the agency : See Article 36 of the Act

2E. Do the competition agencies have any other administrative, decision making or negotiating roles?
Please tick one box below :

Yes
No ----- Go to Question 3

And what are these roles? See Art. 63 of the Act

THE SUBSTANTIVE PROHIBITIONS IN YOUR COMPETITION LAWS
General prohibitions

3. Most competition statutes have general prohibitions against anti-competitive behavior(e.g. "Combinations in restraint of trade", "agreements to substantially lessen competition"). Are there any general prohibitions in your competition law?
Please tick one box below :

Yes
No ----- Go to Question 4

And what are they? See Art. 3(5), 19, and 23 of the Act

Horizontal Agreements

4. Horizontal agreements are agreements between firms directly in competition with one another.

4A. Price fixing [agreements between competitors to raise or fix prices]
Please tick one box below :

Yes
No ----- Go to Question 4B

Please specify the law and the provision of that law:
Art.9.1 I) of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable

Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

4B. Bid rigging [agreements on which firm will make the low bid for contracts and what that bid will be]
Does your law have special provisions relating to bid rigging?
Please tick one box below :

Yes
No ----- Go to Question 4C

Please specify the law and the provision of that law :
Art 19. 1. )~) of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

4C. Market sharing [agreements to allocate specific customers or sales territories to particular firms and not to compete over the territory or customers of other firms]
Does your law have special provisions relating to market sharing?
Please tick one box below :

Yes
No ----- Go to Question 4D

Please specify the law and the provision of that law :
Art. 19. 1. ) of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

4D. Output limitation [agreements not to supply more than a specified quantity of goods or services]
Does your law have special provisions relating to output limitation?
Please tick one box below :

Yes
No ----- Go to Question 4E

Please specify the law and the provision of that law :
Art. 19. 1 ) of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

4E. Collective boycotts [agreements between competitors not to deal with firms that supply other firms in their market]
Does your law have special provisions relating to collective boycotts?
Please tick one box below :

Yes
No ----- Go to Question 4D

Please specify the law and the provision of that law:
Art. 19. 1 ) of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

4F. Trade association activities [agreements between members of a trade association]
Does your law have special provisions relating to trade association activities?
Please tick one box below :

Yes
No ----- Go to Question 4G

Please specify the law and the provision of that law :
Art. 26. 1 of the Act
And what is the nature of the Provision?
The practice is subject to review by the competition authorities and may be prohibited by administrative if found unreasonable

4G. Other horizontal agreements
Does your law have special provisions relating to other horizontal agreements which we have not mentioned above?
Please tick one box below :

Yes
No ----- Go to Question 5

Please specify the law and the provision of that law :
Art. 19. 1. )~) of the Act
Please list the other horizontal agreements and specify the nature of the provisions. i.e. ls the practice (a) prohibited in all cases, (b) presumed to be in contravention of the general prohibition, (c) subject to review by the competition authorities and may be prohibited by a administration decree if unreasonable Refer to the attached documents

Monopolization and Dominant Firm Behaviour

5. Monopolization and dominant firm provisions are aimed at individual firms with market power, Such firms may be able to use their market power to restrict the competitive process or to charge excessive prices.

5A. General provisions
Does your law have general provisions prohibiting monopolization or dominant firm behaviour?
Please tick one box below :

Yes
No ----- Go to Question 5B

Please specify the law and the provision of that law :
Art. 3 of the Act
What type of behaviour is this provision aimed at and what is the nature of the provision?
Type of behavior : See Art. 3. 1 ~ 5
Nature of the provision : The practice is subject to the review by the competition authorities

5B. Excessive prices
Are there any provisions prohibiting dominant firms from charging excessive
prices?
Please tick one box below:

Yes
No ----- Go to Question 5C

Please specify the law and the provision of that law :
Art. 3. 1 of the Act
What is the nature of the provision?
Refer to the above answer

5C. Presumptions of dominant position
Are there any provisions defining a dominant position, or creating a presumption
that firms with a particular market share or size are in a dominant position?
Please tick one box below:

Yes
No ----- Go to Question 5D

Please specify the law and the provision of that law : Art. 2. 7 of the Act
Describe the provision : Refer to the above article of the Act

5D. Predatory pricing[selling at below cost for the purpose of driving out competitor]
Are there any specific provisions relating to predatory pricing?
Please tick one box below :

Yes
No ----- Go to Question 5E

Please specify the law and the provision of that law :
Art. 3 of the Annexed list of the Presidential Decree based on the Art 23.2 of the
Act
What type of behaviour is this provision aimed at and what is the nature of the
provision?
This provision is aimed at prohibiting the unjustifiable discount and high-priced
purchase, thereby ultimately protecting the competitors.

5E. Refusals to deal
Are there any specific provisions relating to "refusals to deal" by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?
There are no special provision to prohibit dominant firms, "refusal to deal" but "refusal to deal" is probibited by Art. 23 regardless of whether or not the viclator has a dominant pisition
(See chapter 5 of the Act)

5F. Discriminatory behaviour [selling to some customers, particularly associated companies, on different terms to others]
Are there any specific provisions relating to discriminatory behaviour by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5G

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

5G. Exclusive dealing [requiring a retailer or distributor not to sell products competing with the supplier's products]
Are there any specific provisions relating to exclusive dealing by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5H

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

5H. Tie-ins[requiring purchasers of one product to purchase other products from the same supplier]
Are there any specific provisions relating to tie-ins by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5I

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

5I. Third line forcing[requiring purchasers of one product to purchase other products from named suppliers]
Are there any specific provisions relating to third line forcing by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5J

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

5J. Territorial restrictions[Specifying that the retailer or distributor may not resell outside of a defined territory]
Are there any specific provisions relating to territorial restrictions by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5K

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

5K. Customer restrictions[specifying that the retailer or distributor may only deal with specified customers]
Are there any specific provisions relating to customer restrictions by dominant firms?
Please tick one box below :

Yes
No ----- Go to Question 5L

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

5L. Other specific provisions
Are there any specific provisions relating to Monopolization or dominant firm behaviour in your law.
Please tick one box below :

Yes
No ----- Go to Question 6

Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?

Vertical Restraints

6. Vertical restraints are restrictions imposed by supplying firms upon distributors or retailers on matters such as the price at which the good may be sold, what other products the distributor must or must not sell, or the territory in which the good may be sold.

6A. Resale price maintenance [specification of a minimum price at which the product may be resold to customers]
Does your law have special provisions relating to resale price maintenance?
Please tick one box below :

Yes
No ----- Go to Question 6B

Please specify the law and the provision of that law :
Art. 29 of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6B. Maximum resale price maintenance [specification of a maximum price at which the product may be resold to customers]
Does your law have special provisions relating to maximum resale price maintenance?
Please tick one box below :

Yes
No ----- Go to Question 6C

Please specify the law and the provision of that law.
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6C. Exclusive dealing
Does your law have special provisions relating to exclusive dealing?
Please tick one box below :

Yes
No ----- Go to Question 4D

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6D. Tie-ins
Does your law have special provisions relating to tie-ins?
Please tick one box below :

Yes
No ----- Go to Question 6E

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6E. Third line forcing
Does your law have special provisions relating to third-line forcing?
Please tick one box below :

Yes
No ----- Go to Question 6F

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6F. Territorial restrictions
Does your law have special provisions relating to territorial restrictions?
Please tick one box below :

Yes
No ----- Go to Question 6G

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6G. Customer restrictions
Does your law have special provisions relating to customer restrictions?
Please tick one box below :

Yes
No ----- Go to Question 6H

Please specify the law and the provision of that law.
And what is the nature of the Provision?
The practice is prohibited in all cases
The practice is presumed to be in contravention of a general prohibition
The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable
Other (please specify)
If covered by a general prohibition how does that prohibition treat the practice?

6H. Other non-price vertical restraints
Does your law have special provisions relating other non-price vertical restraints which we have not mentioned above?
Please tick one box below :

Yes
No ----- Go to Question 7

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
Please list the other horizontal agreements and specify the nature of the provisions. i.e ls the practice (a) prohibited in all cases, (b) presumed to be in contravention
of the general prohibition, (c) subject to review by the competition authorities and may be prohibited by a administration decree if unreasonable 32 types of unfair trade practices are delineated in the Annexed List in the Enforcement Decree of the Act. The collective boycott, discrimination for the benefit of Affiliated Company, and
unreasonable low pricing between business concerns which have on-going trading status are probibited in principle. Other types of practices are decided by the rule of reason.

Price Discrimination

7. Price discrimination is a practice whereby a firm charges different customers or classes of customers different prices for the same good for reasons unrelated to costs.
Does your law have general provisions prohibiting monopolization or dominant firm behaviour?
Please tick one box below :

Yes
No ----- Go to Question 8

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
What type of behaviour is this provision aimed at and what is the nature of the provision?

Mergers and acquisitions

8. Mergers are the joining together of two or more firms into an existing firm or to create a new firm. Similar effects can often be achieved by the acquisition of business units or business assets from another firm or the creation of a joint venture. Competition laws often treat all three activities under the same provision.

8A. Does your law include a prohibition for anti-competitive mergers and acquisitions?
Please tick one box below :

Yes
No ----- Go to Question 8B

Please specify the law and the provision of that law :
See Art 7. of the Act
And what is the prohibition?
Refer to Paragraph (4) of the same Art. 7 of the Act

8B. Does your law contain any provisions presuming certain mergers to be anti-competitive(for example if they exceed a given market scare)?
Please tick one box below :

Yes
No ----- Go to Question 8C

Please specify the law and the provision of that law.
And what are the presumptions?

8C. Does your law require firms involved in mergers or acquisitions to notify competition agencies?
Please tick one box below :

Yes
No ----- Go to Question 8F

Please specify the law and the provision of that law :
Art 12. of the Act
And when is the notification required?
Please tick one box below:
Notification required before the merger takes place or
Notification required after the merger takes place

8D. And what are the time limits for notification? 30 days

8E. If the law requires firms to notify the competition agency or agencies, what criteria are used to identify which mergers must be notified?
See Art 12 of the Act and Art 11 (1) of the Enforcement Decree

8F. If the law does not require firms to notify the competition agency of mergers, does it allow for voluntary notification?
Please tick one box below:

Yes
No ----- Go to Question 8G

Please specify the law and the provision of that law.

8G. For the competition agency to stop of prevent anti-competitive mergers and acquisitions, which of the following applies?
Please tick one box below:
The main competition agency can take administrative actions
The main competition agency has to apply to court

Deceptive or misleading advertising or representations

9. Does your competition law contain any provisions prohibiting advertising which is deceptive or misleading, or other misleading representations(for example labels which state that the product was made in a different country to the actual country of origin, or that it is the product of a different firm)?
Please tick one box below:

Yes
No ----- Go to Question 8G

Please specify the law and the provision of that law :
Art 23.1 ) of the Act
And what is the provision? See Art 23. 1 ) of the Act

Unfair use of bargaining position(unconscionable conduct)

10. Does your competition law contain any provisions prohibiting firms from making unfair use of their bargaining position?
Please tick one box below:

Yes
No ----- Go to Question 11

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
How do you define "unfair use of their bargaining position"?
"Delaing with the opposite party by abuse of one's superior position"
What firms does the provision apply to?
There is no specific provisian which limits the application of "unfair use of bargaining position"
And which customers does the provision apply to?

Coercive behaviour

11. Does your competition law contain any provisions aimed at preventing firms from taking action to intimidate competitors or the customers of competitors?
Please tick one box below:

Yes
No ----- Go to Question 12

Please specify the law and the provision of that law.

Other substantive prohibitions

12. Does your competition law have provisions for the protection of competition other than those outlined above?
Please tick one box below:

Yes
No ----- Go to Question 13

Please specify the law and the provision of that law:
See the chapter 3 and 8 of the Act.
And what are the provisions?
Refer to the Art. 7~18, Art 3234-2 of the Act

EXEMPTIONS FROM THE PROVISIONS OF YOUR COMPETITION LAW
Actions authorised under other types of law

13. If there is a potential conflict between your competition law and other laws how do you determine which law takes precedence?
See Art 58 of the Act
Please specify the law and the provision of that law.

Import Cartels or Agreements Between Importers

14. Does your competition law exempt or partially exempt agreements aimed at controlling the flow of imports into your country?
Please tick one box below:

Yes
No ----- Go to Question 15

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

Export Cartels or Agreements Between Exporter

15. Does your competition law exempt or partially exempt agreements between exporters from your country?
Please tick one box below:

Yes
No ----- Go to Question 16

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

Specific products or industries

16. Are there any specific products or industries (e.g. agriculture, international shipping) which are exempted or partially exempted from your competition law?
Please tick one box below:

Yes
No ----- Go to Question 17

Please list the sectors exempt or partially exempt and the nature of the exemption.
Sectors which are exempted : See Art. 2 of the Act
Nature of the exemption(please also specify the law where this can be found) : The sectors which are not listed in Article 2 are exempt for the application of the Act
Sectors which are partially exempted:
Nature of the exemption(please also specify the law where this can be found)

Small business

17. Are there any exemptions or partial exemptions form your competition law for small and medium size businesses?
Please tick one box below:

Yes
No ----- Go to Question 17

Please specify the law and the provision of that law.
What is the nature of the exemptions?
See Art 10 of the Act and Art 27 of the Enforecement Decree
And how is small business defined?
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Deceptive or misleading advertising or representations

9. Does your competition law contain any provisions prohibiting advertising which is deceptive or misleading, or other misleading representations(for example labels which state that the product was made in a different country to the actual country of origin, or that it is the product of a different firm)?
Please tick one box below:

Yes
No ----- Go to Question 8G

Please specify the law and the provision of that law :
Art 23.1 ) of the Act
And what is the provision? See Art 23. 1 ) of the Act

Unfair use of bargaining position(unconscionable conduct)

10. Does your competition law contain any provisions prohibiting firms from making unfair use of their bargaining position?
Please tick one box below:

Yes
No ----- Go to Question 11

Please specify the law and the provision of that law :
Annexed List in the Enforcement Decree of the Act
How do you define "unfair use of their bargaining position"?
"Delaing with the opposite party by abuse of one's superior position"
What firms does the provision apply to?
There is no specific provisian which limits the application of "unfair use of bargaining position"
And which customers does the provision apply to?

Coercive behaviour

11. Does your competition law contain any provisions aimed at preventing firms from taking action to intimidate competitors or the customers of competitors?
Please tick one box below:

Yes
No ----- Go to Question 12

Please specify the law and the provision of that law.

Other substantive prohibitions

12. Does your competition law have provisions for the protection of competition other than those outlined above?
Please tick one box below:

Yes
No ----- Go to Question 13

Please specify the law and the provision of that law:
See the chapter 3 and 8 of the Act.
And what are the provisions?
Refer to the Art. 7~18, Art 3234-2 of the Act

EXEMPTIONS FROM THE PROVISIONS OF YOUR COMPETITION LAW
Actions authorised under other types of law

13. If there is a potential conflict between your competition law and other laws how do you determine which law takes precedence?
See Art 58 of the Act
Please specify the law and the provision of that law.

Import Cartels or Agreements Between Importers

14. Does your competition law exempt or partially exempt agreements aimed at controlling the flow of imports into your country?
Please tick one box below:

Yes
No ----- Go to Question 15

Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

Export Cartels or Agreements Between Exporter

15. Does your competition law exempt or partially exempt agreements between exporters from your country?
Please tick one box below:
Yes
No ----- Go to Question 16
Please specify the law and the provision of that law.
What type of behaviour is this provision aimed at and what is the nature of the provision?

Specific products or industries

16. Are there any specific products or industries (e.g. agriculture, international shipping) which are exempted or partially exempted from your competition law?
Please tick one box below:

Yes
No ----- Go to Question 17

Please list the sectors exempt or partially exempt and the nature of the exemption.
Sectors which are exempted : See Art. 2 of the Act
Nature of the exemption(please also specify the law where this can be found) : The sectors which are not listed in Article 2 are exempt for the application of the Act
Sectors which are partially exempted:
Nature of the exemption(please also specify the law where this can be found)

Small business

17. Are there any exemptions or partial exemptions form your competition law for small and medium size businesses?
Please tick one box below:

Yes
No ----- Go to Question 17

Please specify the law and the provision of that law.
What is the nature of the exemptions?
See Art 10 of the Act and Art 27 of the Enforecement Decree
And how is small business defined?
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Rationalisation cartels or agreements

18. Rationalisation cartels are agreements between firms, and authorised by the government, to close down inefficient plants, reduce capacity and reorganise production in order to increase overall industry efficiency and performance. Does your competition law contain any exemptions or partial exemptions for rationalisation cartels?
Please tick one box below:

Yes
No ----- Go to Question 19

Please specify the law and the provision of that law :
Art 19. 1 of the Act

Depression cartels or agreements

19. Depression cartels are agreements between firms and authorised by the government to reduce production to meet a temporary downturn in the market. Does your competition law contain any exemptions or partial exemptions for depression cartels?
Please tick one box below:

Yes
No ----- Go to Question 20

Please specify the law and the provision of that law :
Art 19. 1 of the Act

Government agencies

20. Are Government agencies exempted or partially exempted from your competition law?

Yes
No ----- Go to Question 21

Please specify the law and the provision of that law.
And what is the nature of the exemptions?

Practices authorised by administering bodies

21. Is there any provision for competition agencies or the relevant ministers to exempt specific activities from the competition law?
Please tick one box below:

Yes
No ----- Go to Question 22

Please specify the law and the provision of that law :
Art. 58 of the Act
Please specify the criteria which are applied in deciding whether to exempt activities or not.

Intellectual property

22. Does your competition law contain any exemptions for actions relating to the protection of intellectual property rights?
Please tick one box below:

Yes
No ----- Go to Question 23

Please specify the law and the provision of that law :
Art. 59 of the Act
And what is the nature of this exemption?

Labour markets

23. Does your competition law exempt or partially exempt labour market activities?
Please tick one box below:

Yes
No ----- Go to Question 24

Please specify the law and the provision of that law.
And what is the nature of this exemption?

Other exemptions

24. Are there any other exemptions from your competition law other than those outlined above?
Please tick one box below:

Yes
No ----- Go to Question 25

Please specify the law and the provision of that law :
Art. 60 of the Act
Please list the other exemptions from your competition law?

INTERNATIONAL APPLICATIONS
Acts by citizens or organizations outside the country

25. To what extent are the overseas activities of your citizens or organizations covered by your competition law?
The Act is applied to Korean citizens or organizations wherever they are located.

Acts by foreign citizens or organisations

26. To what extent are the actions of foreign citizens or organizations covered by your competition laws for actions that take place inside your borders?
The Act is applied to foreign citizens or organizations who carry out actions inside Korean territory

27. To what extent are the actions of foreign citizens or organizations covered by your competition laws for actions that take place outside your borders but affect markets within your borders?
There is no provision in the Act concerning these actions

28. To what extent are the actions of foreign citizens or organizations covered by your competition laws for actions that take place outside your borders but affect exporters from your country?
There is no provision in the Act concerning these actions

ENFORCEMENT, REMEDIES AND PENALTIES
Mode of operation

29. Different countries have different ways of controlling anti-competitive behaviour. Which of the following best describes your approach?
Please tick the appropriate boxes below:
we tend to prohibit specified anti-competitive activities
we tend to take administrative action to prevent abuses

Sanctions

30. In this section we wish to examine the sanctions which are available to the competition agencies and/ or courts to deal with contraventions of the law

30A. What is the maximum fine chargeable for the various offences against your competition law?
See Art 6, 17, 22, 24-2, 28, 31-2, 34-2 and 69-2

30B. Are any other criminal penalties, including imprisonment, available for offences against the competition law?
Please tick one box below:

Yes
No ----- Go to Question 30C

Please specify the law and the provision of that law.
And what are those penalties?
See the chapter 14

30C. Does the competition agency have the power to order restitution or payment of damages to affected parties?
Please tick one box below:

Yes
No ----- Go to Question 30D

Please specify the law and the provision of that law ;
See the chapter 11 of the Act

30D. Does the legislation provide for orders to be made by government or other bodies to prevent repeat contraventions?
Please tick one box below:

Yes
No ----- Go to Question 30E

Please specify the law and the provision of that law.
What form of orders can be made, and by what body?
See Art 5, 16, 18, 21, 24, 27, 31, 34 and 51 of the Act

30E. What other penalties or sanctions are available?

Private parties

31A. Do private parties have the right to take action against prohibited activities in the absence of action by the enforcement agency?

Please tick one box below:

No ----- Go to Question 31B

31B. What damages and remedies are available to private parties?

31C. Can private parties seek orders to prevent contravention?

Please tick one box below:

No ----- Go to Question 32

Please specify the law and the provision of that law.

What form of orders can they seek?
Foreign complainants

32. Are there any restrictions or special limitations where the complainant is not domestically based?
Please tick one box below:

Yes
No ----- Go to Question 33

Please specify the law and the provision of that law.

33. Are there any restrictions or special limitations where the complainant is a foreign government?
Please tick one box below:

Yes
No ----- Go to Question 34

And what are they?

Other aspects

34. Are there any other aspects of your competition law or enforcement policy which you would like to comment on? If so, what are they?

Specific Questions and Answers(From NEW ZEALAND)

Q1:	Does a competition policy framework exist in Korea? If so, what is its nature? If not, does Korea intend to introduce one?

ANSWER:

As indicated in the Individual Action Plan, the Fair Trade Commission, an independent central administrative agency, is in charge of competition policy in Korea.
The statutes enforced by the agency include three acts: Monopoly Regulation and Fair Trade Act (or Fair Trade Act) which contains the basic provisions of competition laws; Fair Subcontract Transactions Act; and Regulation of Standardized Contracts Act.
Korea's competition policy aims to promote fair and free competition, based on which innovative business activities can be stimulated and consumers protected. Ultimately, competition policy promotes a balanced development of the national economy.

Q2:	Does Korea intend to undertake any specific actions in order to enhance the transparency of, and to improve upon, existing competition laws?

ANSWER:

Please read the part on "Measures to improve transparency."

1. Review its respective competition policy and/or laws and the enforcement thereof in terms of transparency.

Short Term (1997~2000)

< Strengthening enforcement of the Fair Trade Act >

The KFTC plans to reduce the areas which are exempted from the application of the Fair Trade Act to a minimum as well as to reduce the scope of granting exceptions to anticompetitive collaborative activities.
The KFTC plans to strengthen the examination of anticompetitive corporate mergers and to bring up Korean merger examination standards to the international level.
< Strengthening deregulatory functions >
The KFTC will continuously make efforts to eliminate anticompetive elements in existing laws and regulations and to prevent the introduction of new competition- restricting laws and regulations by intensifying the prior examination of newly established laws and revised laws.
< Enhancing fairness, transparency, and professionalism of KFTC affair procedures >
The KFTC will strive to minimize public inconveniences that may arise in the process of filing complaints, and it will establish a "Consumer Satisfaction Administrative System" to make KFTC affairs more consumer-oriented.
Beginning in 1997, the KFTC will establish a Fair Trade Monitor System in which fair trade monitors will be chosen from the general public who will be responsible for reporting unfair business practices to the KFTC.
Also beginning in 1997, the KFTC will build a Fair Trade Information Network System in which the KFTC will provide information of fair trade laws and regulations to the general public through PC network and through which the general public can also file reports of unfair business pratices.

Short Term (2001~2010)
To effectively enforce competition policies, the KFTC will be reorganized and the procedures and methods of law enforcements will be improved.

Q3:	It is currently not clear what industries are exempt from competition laws in Korea, and therefore how these would be dealt with under a review - we would find some clarification of this matter helpful.

ANSWER:

Article 2 of the Monopoly Regulation and Fair Trade Act (Fair Trade Act) stipulates the businesses which are subject to application of the Fair Trade Act. Article 2 states that business activities pertaining to the primary industry, such as agriculture, mining, fishery, forestry, are exempt from application of the Fair Trade Act.
According to Article 58 of the Fair Trade Act, acts of an enterprise or trade association conducted in accordance with any act or any decree to such act are exempt from application of the Fair Trade Act.
Under Article 59 of the Fair Trade Act, any acts which are deemed as an exercise of (intangible property) rights under the Copyright Act, the Patent Act, the Utility Model Act, the Design Act, or the Trademark Act, are exempt from application of the Fair Trade Act.
This does not mean that exercise of intangible property rights are unconditionally protected. They are only protected to the extent authorized by the respective Acts. In the case of abuse of intangible property rights or engaging in unfair trade practices through the exercise of intangible property rights, those acts shall be considered violations of the Fair Trade Act.

Q4:	We note that there appear to be no moves to examine or eliminate trade/investment distortions contained in the IAP. What does Korea intend to do in the medium/long term?

ANSWER:

The Fair Trade Commission, the competition authority of Korea, is not directly in charge of investigating or eliminating trade/investment distortions.
However, the Fair Trade Commission does create an environment conducive to competition by enforcing the competition laws. By continuing such efforts, the commission will steadily remove anti-competitive acts that impede on trade/investment liberalization efforts.

Q5:	What sort of technical assistance did Korea provide in 1996?

ANSWER:

In September 1996, the Fair Trade Commission held a Competition Policy Training Program as a means of implementing the Osaka Action Agenda.
A total of 24 competition policy-makers from 12 nations participated in the program. From APEC, a total of 17 people came from 8 member states.
APEC participants (8 nations): China, Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand

2.	Now, we are interested in the principal agencies involved in the enforcement and administration of your competition laws. What are the respective roles of the principal agencies involved in enforcement of the law?
2A.	Head of State Appoints Chairman, Vice-chairman and Commissioners of the Fair Trade Commission proclaims, Presidential Decree to implement the Fair Trade Act
2B.	Government/relevant ministers The Fair Trade Commision has been established under the jurisdiction of the Prime Minister for the purpose of accomplishing the objectives of the Fair Trade Acts
2C.	Courts The Seoul High Court has an exclusive jurisdiction over the appeal of the Commission's decision. The Supreme Court makes the final decision regarding appeals of dissatisfaction
2D.	Competition agencies Please specify the their names and roles Names of the principal agencies involved in the enforcement or administration of your competition law : Fair Trade Commision Roles of the agency : See Article 36 of the Act
2E.	Do the competition agencies have any other administrative, decision making or negotiating roles? Please tick one box below : Yes No ----- Go to Question 3 And what are these roles? See Art. 63 of the Act

4.	Horizontal agreements are agreements between firms directly in competition with one another.
4A.	Price fixing [agreements between competitors to raise or fix prices] Please tick one box below : Yes No ----- Go to Question 4B Please specify the law and the provision of that law: Art.9.1 I) of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
4B.	Bid rigging [agreements on which firm will make the low bid for contracts and what that bid will be] Does your law have special provisions relating to bid rigging? Please tick one box below : Yes No ----- Go to Question 4C Please specify the law and the provision of that law : Art 19. 1. )~) of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
4C.	Market sharing [agreements to allocate specific customers or sales territories to particular firms and not to compete over the territory or customers of other firms] Does your law have special provisions relating to market sharing? Please tick one box below : Yes No ----- Go to Question 4D Please specify the law and the provision of that law : Art. 19. 1. ) of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
4D.	Output limitation [agreements not to supply more than a specified quantity of goods or services] Does your law have special provisions relating to output limitation? Please tick one box below : Yes No ----- Go to Question 4E Please specify the law and the provision of that law : Art. 19. 1 ) of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
4E.	Collective boycotts [agreements between competitors not to deal with firms that supply other firms in their market] Does your law have special provisions relating to collective boycotts? Please tick one box below : Yes No ----- Go to Question 4D Please specify the law and the provision of that law: Art. 19. 1 ) of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
4F.	Trade association activities [agreements between members of a trade association] Does your law have special provisions relating to trade association activities? Please tick one box below : Yes No ----- Go to Question 4G Please specify the law and the provision of that law : Art. 26. 1 of the Act And what is the nature of the Provision? The practice is subject to review by the competition authorities and may be prohibited by administrative if found unreasonable
4G.	Other horizontal agreements Does your law have special provisions relating to other horizontal agreements which we have not mentioned above? Please tick one box below : Yes No ----- Go to Question 5 Please specify the law and the provision of that law : Art. 19. 1. )~) of the Act Please list the other horizontal agreements and specify the nature of the provisions. i.e. ls the practice (a) prohibited in all cases, (b) presumed to be in contravention of the general prohibition, (c) subject to review by the competition authorities and may be prohibited by a administration decree if unreasonable Refer to the attached documents

5.	Monopolization and dominant firm provisions are aimed at individual firms with market power, Such firms may be able to use their market power to restrict the competitive process or to charge excessive prices.
5A.	General provisions Does your law have general provisions prohibiting monopolization or dominant firm behaviour? Please tick one box below : Yes No ----- Go to Question 5B Please specify the law and the provision of that law : Art. 3 of the Act What type of behaviour is this provision aimed at and what is the nature of the provision? Type of behavior : See Art. 3. 1 ~ 5 Nature of the provision : The practice is subject to the review by the competition authorities
5B.	Excessive prices Are there any provisions prohibiting dominant firms from charging excessive prices? Please tick one box below: Yes No ----- Go to Question 5C Please specify the law and the provision of that law : Art. 3. 1 of the Act What is the nature of the provision? Refer to the above answer
5C.	Presumptions of dominant position Are there any provisions defining a dominant position, or creating a presumption that firms with a particular market share or size are in a dominant position? Please tick one box below: Yes No ----- Go to Question 5D Please specify the law and the provision of that law : Art. 2. 7 of the Act Describe the provision : Refer to the above article of the Act
5D.	Predatory pricing[selling at below cost for the purpose of driving out competitor] Are there any specific provisions relating to predatory pricing? Please tick one box below : Yes No ----- Go to Question 5E Please specify the law and the provision of that law : Art. 3 of the Annexed list of the Presidential Decree based on the Art 23.2 of the Act What type of behaviour is this provision aimed at and what is the nature of the provision? This provision is aimed at prohibiting the unjustifiable discount and high-priced purchase, thereby ultimately protecting the competitors.
5E.	Refusals to deal Are there any specific provisions relating to "refusals to deal" by dominant firms? Please tick one box below : Yes No ----- Go to Question 5 Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision? There are no special provision to prohibit dominant firms, "refusal to deal" but "refusal to deal" is probibited by Art. 23 regardless of whether or not the viclator has a dominant pisition (See chapter 5 of the Act)
5F.	Discriminatory behaviour [selling to some customers, particularly associated companies, on different terms to others] Are there any specific provisions relating to discriminatory behaviour by dominant firms? Please tick one box below : Yes No ----- Go to Question 5G Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
5G.	Exclusive dealing [requiring a retailer or distributor not to sell products competing with the supplier's products] Are there any specific provisions relating to exclusive dealing by dominant firms? Please tick one box below : Yes No ----- Go to Question 5H Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
5H.	Tie-ins[requiring purchasers of one product to purchase other products from the same supplier] Are there any specific provisions relating to tie-ins by dominant firms? Please tick one box below : Yes No ----- Go to Question 5I Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
5I.	Third line forcing[requiring purchasers of one product to purchase other products from named suppliers] Are there any specific provisions relating to third line forcing by dominant firms? Please tick one box below : Yes No ----- Go to Question 5J Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
5J.	Territorial restrictions[Specifying that the retailer or distributor may not resell outside of a defined territory] Are there any specific provisions relating to territorial restrictions by dominant firms? Please tick one box below : Yes No ----- Go to Question 5K Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
5K.	Customer restrictions[specifying that the retailer or distributor may only deal with specified customers] Are there any specific provisions relating to customer restrictions by dominant firms? Please tick one box below : Yes No ----- Go to Question 5L Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
5L.	Other specific provisions Are there any specific provisions relating to Monopolization or dominant firm behaviour in your law. Please tick one box below : Yes No ----- Go to Question 6 Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?

6.	Vertical restraints are restrictions imposed by supplying firms upon distributors or retailers on matters such as the price at which the good may be sold, what other products the distributor must or must not sell, or the territory in which the good may be sold.
6A.	Resale price maintenance [specification of a minimum price at which the product may be resold to customers] Does your law have special provisions relating to resale price maintenance? Please tick one box below : Yes No ----- Go to Question 6B Please specify the law and the provision of that law : Art. 29 of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6B.	Maximum resale price maintenance [specification of a maximum price at which the product may be resold to customers] Does your law have special provisions relating to maximum resale price maintenance? Please tick one box below : Yes No ----- Go to Question 6C Please specify the law and the provision of that law. And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6C.	Exclusive dealing Does your law have special provisions relating to exclusive dealing? Please tick one box below : Yes No ----- Go to Question 4D Please specify the law and the provision of that law : Annexed List in the Enforcement Decree of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6D.	Tie-ins Does your law have special provisions relating to tie-ins? Please tick one box below : Yes No ----- Go to Question 6E Please specify the law and the provision of that law : Annexed List in the Enforcement Decree of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6E.	Third line forcing Does your law have special provisions relating to third-line forcing? Please tick one box below : Yes No ----- Go to Question 6F Please specify the law and the provision of that law : Annexed List in the Enforcement Decree of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6F.	Territorial restrictions Does your law have special provisions relating to territorial restrictions? Please tick one box below : Yes No ----- Go to Question 6G Please specify the law and the provision of that law : Annexed List in the Enforcement Decree of the Act And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6G.	Customer restrictions Does your law have special provisions relating to customer restrictions? Please tick one box below : Yes No ----- Go to Question 6H Please specify the law and the provision of that law. And what is the nature of the Provision? The practice is prohibited in all cases The practice is presumed to be in contravention of a general prohibition The practice is subject to review by the competition authorities and may be prohibited by administrative action if unreasonable Other (please specify) If covered by a general prohibition how does that prohibition treat the practice?
6H.	Other non-price vertical restraints Does your law have special provisions relating other non-price vertical restraints which we have not mentioned above? Please tick one box below : Yes No ----- Go to Question 7 Please specify the law and the provision of that law : Annexed List in the Enforcement Decree of the Act Please list the other horizontal agreements and specify the nature of the provisions. i.e ls the practice (a) prohibited in all cases, (b) presumed to be in contravention of the general prohibition, (c) subject to review by the competition authorities and may be prohibited by a administration decree if unreasonable 32 types of unfair trade practices are delineated in the Annexed List in the Enforcement Decree of the Act. The collective boycott, discrimination for the benefit of Affiliated Company, and unreasonable low pricing between business concerns which have on-going trading status are probibited in principle. Other types of practices are decided by the rule of reason.

8.	Mergers are the joining together of two or more firms into an existing firm or to create a new firm. Similar effects can often be achieved by the acquisition of business units or business assets from another firm or the creation of a joint venture. Competition laws often treat all three activities under the same provision.
8A.	Does your law include a prohibition for anti-competitive mergers and acquisitions? Please tick one box below : Yes No ----- Go to Question 8B Please specify the law and the provision of that law : See Art 7. of the Act And what is the prohibition? Refer to Paragraph (4) of the same Art. 7 of the Act
8B.	Does your law contain any provisions presuming certain mergers to be anti-competitive(for example if they exceed a given market scare)? Please tick one box below : Yes No ----- Go to Question 8C Please specify the law and the provision of that law. And what are the presumptions?
8C.	Does your law require firms involved in mergers or acquisitions to notify competition agencies? Please tick one box below : Yes No ----- Go to Question 8F Please specify the law and the provision of that law : Art 12. of the Act And when is the notification required? Please tick one box below: Notification required before the merger takes place or Notification required after the merger takes place
8D.	And what are the time limits for notification? 30 days
8E.	If the law requires firms to notify the competition agency or agencies, what criteria are used to identify which mergers must be notified? See Art 12 of the Act and Art 11 (1) of the Enforcement Decree
8F.	If the law does not require firms to notify the competition agency of mergers, does it allow for voluntary notification? Please tick one box below: Yes No ----- Go to Question 8G Please specify the law and the provision of that law.
8G.	For the competition agency to stop of prevent anti-competitive mergers and acquisitions, which of the following applies? Please tick one box below: The main competition agency can take administrative actions The main competition agency has to apply to court

30.	In this section we wish to examine the sanctions which are available to the competition agencies and/ or courts to deal with contraventions of the law
30A.	What is the maximum fine chargeable for the various offences against your competition law? See Art 6, 17, 22, 24-2, 28, 31-2, 34-2 and 69-2
30B.	Are any other criminal penalties, including imprisonment, available for offences against the competition law? Please tick one box below: Yes No ----- Go to Question 30C Please specify the law and the provision of that law. And what are those penalties? See the chapter 14
30C.	Does the competition agency have the power to order restitution or payment of damages to affected parties? Please tick one box below: Yes No ----- Go to Question 30D Please specify the law and the provision of that law ; See the chapter 11 of the Act
30D.	Does the legislation provide for orders to be made by government or other bodies to prevent repeat contraventions? Please tick one box below: Yes No ----- Go to Question 30E Please specify the law and the provision of that law. What form of orders can be made, and by what body? See Art 5, 16, 18, 21, 24, 27, 31, 34 and 51 of the Act
30E.	What other penalties or sanctions are available?