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
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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?
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Head of State Appoints Chairman, Vice-chairman and Commissioners of the Fair Trade Commission proclaims, Presidential Decree to implement the Fair Trade Act
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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
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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
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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
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Do the competition agencies have any other administrative, decision making or negotiating roles? Please tick one box below :
No ----- Go to Question 3
And what are these roles? See Art. 63 of the Act |
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 :
No ----- Go to Question 4
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4. | Horizontal agreements are agreements between firms directly in competition with one another.
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Price fixing [agreements between competitors to raise or fix prices] Please tick one box below :
No ----- Go to Question 4B
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
If covered by a general prohibition how does that prohibition treat the practice?
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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 :
No ----- Go to Question 4C
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?
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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 :
No ----- Go to Question 4D
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?
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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 :
No ----- Go to Question 4E
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?
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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 :
No ----- Go to Question 4D
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?
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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 :
No ----- Go to Question 4G
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
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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 :
No ----- Go to Question 5
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
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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.
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General provisions Does your law have general provisions prohibiting monopolization or dominant firm behaviour? Please tick one box below :
No ----- Go to Question 5B
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
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Excessive prices Are there any provisions prohibiting dominant firms from charging excessive prices? Please tick one box below:
No ----- Go to Question 5C
Art. 3. 1 of the Act What is the nature of the provision?
Refer to the above answer | |
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:
No ----- Go to Question 5D
Describe the provision : Refer to the above article of the Act
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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 :
No ----- Go to Question 5E
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.
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Refusals to deal Are there any specific provisions relating to "refusals to deal" by dominant firms? Please tick one box below :
No ----- Go to Question 5
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) | |
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 :
No ----- Go to Question 5G
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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 :
No ----- Go to Question 5H
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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 :
No ----- Go to Question 5I
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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 :
No ----- Go to Question 5J
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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 :
No ----- Go to Question 5K
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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 :
No ----- Go to Question 5L
What type of behaviour is this provision aimed at and what is the nature of the provision?
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Other specific provisions Are there any specific provisions relating to Monopolization or dominant firm behaviour in your law. Please tick one box below :
No ----- Go to Question 6
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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.
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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 :
No ----- Go to Question 6B
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?
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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 :
No ----- Go to Question 6C
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?
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Exclusive dealing Does your law have special provisions relating to exclusive dealing? Please tick one box below :
No ----- Go to Question 4D
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?
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Tie-ins Does your law have special provisions relating to tie-ins? Please tick one box below :
No ----- Go to Question 6E
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?
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Third line forcing Does your law have special provisions relating to third-line forcing? Please tick one box below :
No ----- Go to Question 6F
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?
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Territorial restrictions Does your law have special provisions relating to territorial restrictions? Please tick one box below :
No ----- Go to Question 6G
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?
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Customer restrictions Does your law have special provisions relating to customer restrictions? Please tick one box below :
No ----- Go to Question 6H
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?
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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 :
No ----- Go to Question 7
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.
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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 :
No ----- Go to Question 8
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?
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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.
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Does your law include a prohibition for anti-competitive mergers and acquisitions? Please tick one box below :
No ----- Go to Question 8B
See Art 7. of the Act And what is the prohibition?
Refer to Paragraph (4) of the same Art. 7 of the Act | |
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 :
No ----- Go to Question 8C
And what are the presumptions? | |
Does your law require firms involved in mergers or acquisitions to notify competition agencies? Please tick one box below :
No ----- Go to Question 8F
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 | |
And what are the time limits for notification? 30 days
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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
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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:
No ----- Go to Question 8G
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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 |
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:
No ----- Go to Question 8G
Art 23.1 ) of the Act
And what is the provision? See Art 23. 1 ) of the Act |
10. | Does your competition law contain any provisions prohibiting firms from making unfair use of their bargaining position? Please tick one box below:
No ----- Go to Question 11
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? |
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:
No ----- Go to Question 12
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12. | Does your competition law have provisions for the protection of competition other than those outlined above? Please tick one box below:
No ----- Go to Question 13
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 |
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. |
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:
No ----- Go to Question 15
What type of behaviour is this provision aimed at and what is the nature of the provision?
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15. | Does your competition law exempt or partially exempt agreements between exporters from your country? Please tick one box below:
No ----- Go to Question 16
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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:
No ----- Go to Question 17
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)
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17. | Are there any exemptions or partial exemptions form your competition law for small and medium size businesses? Please tick one box below:
No ----- Go to Question 17
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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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:
No ----- Go to Question 8G
Art 23.1 ) of the Act
And what is the provision? See Art 23. 1 ) of the Act |
10. | Does your competition law contain any provisions prohibiting firms from making unfair use of their bargaining position? Please tick one box below:
No ----- Go to Question 11
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? |
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:
No ----- Go to Question 12
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12. | Does your competition law have provisions for the protection of competition other than those outlined above? Please tick one box below:
No ----- Go to Question 13
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 |
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. |
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:
No ----- Go to Question 15
What type of behaviour is this provision aimed at and what is the nature of the provision?
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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?
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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:
No ----- Go to Question 17
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)
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17. | Are there any exemptions or partial exemptions form your competition law for small and medium size businesses? Please tick one box below:
No ----- Go to Question 17
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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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:
No ----- Go to Question 19
Art 19. 1 of the Act |
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:
No ----- Go to Question 20
Art 19. 1 of the Act |
20. | Are Government agencies exempted or partially exempted from your competition law?
No ----- Go to Question 21 Please specify the law and the provision of that law.
And what is the nature of the exemptions? |
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:
No ----- Go to Question 22
Art. 58 of the Act Please specify the criteria which are applied in deciding whether to exempt activities or not.
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22. | Does your competition law contain any exemptions for actions relating to the protection of intellectual property rights? Please tick one box below:
No ----- Go to Question 23
Art. 59 of the Act
And what is the nature of this exemption? |
23. | Does your competition law exempt or partially exempt labour market activities? Please tick one box below:
No ----- Go to Question 24
And what is the nature of this exemption? |
24. | Are there any other exemptions from your competition law other than those outlined above? Please tick one box below:
No ----- Go to Question 25
Art. 60 of the Act Please list the other exemptions from your competition law?
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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.
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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
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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
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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
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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
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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
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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 | |
Are any other criminal penalties, including imprisonment, available for offences against the competition law? Please tick one box below:
No ----- Go to Question 30C
And what are those penalties?
See the chapter 14 | |
Does the competition agency have the power to order restitution or payment of damages to affected parties? Please tick one box below:
No ----- Go to Question 30D
See the chapter 11 of the Act | |
Does the legislation provide for orders to be made by government or other bodies to prevent repeat contraventions? Please tick one box below:
No ----- Go to Question 30E
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
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What other penalties or sanctions are available? |
Please tick one box below:
No ----- Go to Question 31B
Please tick one box below:
No ----- Go to Question 32
What form of orders can they seek?
32. | Are there any restrictions or special limitations where the complainant is not domestically based? Please tick one box below:
No ----- Go to Question 33
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33. | Are there any restrictions or special limitations where the complainant is a foreign government? Please tick one box below:
No ----- Go to Question 34
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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?
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Q1: | Does a competition policy framework exist in Korea? If so, what is its nature? If not, does Korea intend to introduce one?
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Q2: | Does Korea intend to undertake any specific actions in order to enhance the transparency of, and to improve upon, existing competition laws?
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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 deregulatory functions >
< Enhancing fairness, transparency, and professionalism of KFTC affair procedures >
Short Term (2001~2010) |
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.
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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?
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Q5: | What sort of technical assistance did Korea provide in 1996?
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