South Korea
Answer ... The Monopoly Regulation and Fair Trade Act (MRFTA) is the primary source of law governing competition matters in Korea. The MRFTA is the counterpart of the United States Sherman Act and the Treaty on Functioning of the European Union.
South Korea
Answer ... The Korea Fair Trade Commission (KFTC) is responsible for administering and enforcing the MRFTA. The KFTC, which is part of the executive branch, is an independent regulatory agency. The KFTC is led by nine commissioners, appointed by the president of South Korea for three-year terms. The term can be extended only once by another three years. The KFTC has five bureaux:
- Business Groups;
- Cartel Investigations;
- Consumer Policy;
- Business Trade Policy; and
- Anti-monopoly.
The KFTC, headquartered in Sejong-si, has five regional offices in Seoul, Busan, Gwangju, Daejeon and Daegu.
After a report has been filed by a victim of a breach of the MRFTA or any person with knowledge of an actual or potential breach of the MRFTA (Section 2, Article 80 of the MRFTA), the KFTC may initiate an investigation by giving notice of the investigation to the person who allegedly is violating or has violated the MRFTA. The KFTC may also begin its investigation ex officio. The KFTC will present the notice of investigation on site to the respondent at the beginning of a dawn raid or on-site investigation. The KFTC must reveal substantial information of the investigation in the notice, including:
- the objectives of the investigation;
- its anticipated duration; and
- the method of investigation.
If the KFTC believes that the MRFTA is being or has been violated following its investigation, it will issue and serve an examiner’s report to the respondent. This report is a charging document consisting of factual allegations with citations on violations of the MRFTA (it is the equivalent of an administrative complaint in the United States and a statement of objections in the European Union). The respondent is given the opportunity to object to the allegations during the investigation and even after the examiner’s report has been released. Respondents (and even interested parties) are allowed to present their opinions or provide testimony to the KFTC even after the report has been issued; however, further investigation after issuance of the report is prohibited, unless approved by the KFTC).
Following the release of the examiner’s report, the KFTC will hold a hearing on the charges set forth in the report; additional hearing(s) can be held, but this is not common. After the hearing(s), the KFTC will deliberate and render its decision on the case. The KFTC cannot bring a case directly to the court for remedies instead of instituting administrative proceedings briefly described above.
The respondent may appeal the KFTC’s decision to the Seoul High Court, which has exclusive jurisdiction over appeals of KFTC decisions. The appellate court’s decisions may be appealed to the Supreme Court, the highest court in South Korea.