1. Acknowledgment

Any individual may report a violation of the Fair Trade Act to the KFTC, or the KFTC may investigate violations of the Act on its own initiative.

2. Investigation of Alleged Violation

The investigation of an offense is conducted by the Secretariat under the authority delegated by the KFTC. If deemed necessary, designated staff of the Secretariat may take appropriate measures to gather information, such as examining materials at the business site of a suspected violator or summoning the concerned parties for an investigative hearing.

3. Decision by the Secretariat

If the investigation reveals that the alleged violation is groundless or is a trivial violation of the Fair Trade Act, the Secretariat may reach its own decision on the case and report it to the KFTC. If the charge is determined to be groundless, the case may be dismissed. If the charge is determined to be a trivial violation of the Fair Trade Act, the Secretariat, under the authority delegated by the KFTC, may give a warning or recommendation for the voluntary correction of the violation to the alleged party.

4. Decision by the KFTC

If the results of the investigation reveal that the charged action is a significant violation of the Fair Trade Act, the case is submitted to the KFTC. The KFTC makes a decision after the concerned party has been given an opportunity to defend his/her position.

The decision may include orders for the correction of the charged action as well as the payment of a surcharge or the filing of a complaint for criminal prosecution. Corrective orders include cease and desist orders, the publication of the violation, and etc. A surcharge is imposed on undue collaborative activities, unfair trade practices, and etc. The KFTC files a complaint with the Prosecutor General when a violator has failed to observe corrective orders, when the KFTC feels the violation is very serious, or when the defendant has repeatedly committed a violation.

5. Appeal of the KFTC Decision

The defendant may appeal the final decisions issued by the KFTC at the Seoul High Court and finally at the Supreme Court.

6. Private Suits

As for private suits, anyone who discovers a violation of the Fair Trade Act may report it to the KFTC. Opportunities for private suits regarding the enforcement of the Fair Trade Act are rare. Interested persons can bring a private suit for damages to the court after corrective measures on the violation taken by the KFTC have become definite. Otherwise, a private party is not entitled to file a suit based on a violation of the Fair Trade Act. Although there have been many cases of violations of the Fair Trade Act, on which the KFTC has taken decisive corrective measures, there has been no case that has led to a damage suit by any private person.