Earlier this year, Korea’s Fair Trade Commission has announced the amendment of its rules on merger remedies through the Notice on Merger Remedies. The amendment revises the prior Merger Remedies Guidelines. The most relevant changes are listed below.
- The KFTC will, only, utilize behavioral changes when structural changes are impracticable or may be ineffective. Structural changes, include, prohibition of a merger, divestiture and the transfer of intellectual property rights. The Fair Trade Commission has noted that the preferred choice will be divestiture and a merger injunction will only be ordered when the divestiture is not feasible in the situation.
- The Korea Fair Trade Commission has noted that the guiding principles of the Merger Remedies is: Effectiveness, Proportionality and Transparency and Enforceability. Arguments from attorneys should be directed at the KFTC ability to meet these guiding principles by proposed actions.
- The KFTC has increased investigations and has become much more aggressive in all areas under its jurisdiction. We strongly recommend a compliance audit and a nuanced approach in all actions where your company may be a target of the KFTC.
Other articles on the Korea’s Antitrust/Competition Law may be found at:
- Four Oil Companies in Korea Fined for Price Fixing
- The FTC of Korea: All Bark and No Bite?
- Defining the Relevant Market in Korea by the KFTC
- Korea’s Antitrust Evolution in Korea. Sean Hayes in Korea Times
- Antitrust/Competition Law Consent Orders in Korea
- Fines by Korea Fair Trade Commission Increase for Abuse of Market Dominant Position and Unfair Trade Practices in Korea
Sean Hayes, IPG’s Co-Chair of the Korea Practice Team, may be contacted at: SeanHayes@ipglegal.com
- Philips Fined by Korea Fair Trade Commission for Price Fixing
- Abuse of Superior Bargaining Power Notification by the Korea Fair Trade Commission: Distributor Risks in Korea
- Korean Merger Control and the Korean FTC
- Korea’s National Trade Commission Awards Damages to Local Company for Damages from Korea-EU FTA
- Abuse of Market Dominance in Korea: Competition Law in Korea
- Changes to Korea’s Franchise Law May Lead to an Increased Potential for Criminal Sanctions: Franchise Law Basics