The foundation of South Korea’s cartel enforcement regime is the Monopoly Regulation and Fair Trade Act (“MRFTA”), passed in 1981. The MRFTA broadly prohibits four categories of conduct: (i) unfair collaborative acts; (ii) abuses of dominance; (iii) unfair trade practices; and (iv) mergers and acquisitions that substantially lessen competition in Korea. Recent amendments, which came into force in December 2021, significantly reform the MRFTA, including by (i) expanding the scope of the Korean Fair Trade Commission’s (the “KFTC” or the “Commission”) merger review, (ii) prohibiting exchanges of information necessary to fix prices, restrict outputs, or allocate market shares, and (iii) creating a cause of action for those allegedly harmed by unfair practices. The KFTC is a ministerial-level organisation that functions as both an administrative and quasi-judicial body to enforce Korean antitrust laws. The KFTC formulates and enforces antitrust policies pursuant to four primary mandates: (i) promoting competition; (ii) strengthening consumers’ rights; (iii) creating a competitive environment for small and medium-sized enterprises (“SMEs”); and (iv) restraining concentration of economic power.

Originally published by Global Legal Group Ltd.