SOUTH KOREA Trends and Developments Contributed by: Sang Oh Jeon, Hee Jae Lee, Chiyeol Kim and Seokmin Song, Yoon & Yang LLC
Google case Google has been selling only the YouTube Premium service in Korea, which bundles YouTube’s video streaming service with its music streaming service (YouTube Music), and YouTube Music Premium, which offers the music service alone, but has not offered a standalone YouTube video-only subscription service. The KFTC opened an investigation into Google’s con - duct, suspecting that these sales practices restricted consumer choice and harmed fair competition in the domestic online music service market. In response, Google applied to the KFTC for a consent decree in which it would launch a standalone YouTube video subscription service equivalent to the YouTube Premium Lite subscription offered in other markets. The KFTC decided to initiate consent decree proceed - ings, prepared a provisional consent decree proposal, and plans to finalise the consent decree upon gather - ing stakeholder opinions and consulting with related government bodies. Baedal Minjok and Coupang Eats case The KFTC is currently investigating allegations that Baedal Minjok and Coupang Eats, major operators in Korea’s food delivery app market, abused their dominance by forcing restaurants to set menu prices and discount terms most favuorably for their platform. Baedal Minjok, Korea’s leading food delivery app, acquired by Germany’s Delivery Hero in 2017, holds approximately 60% market share based on monthly active users (MAU) as of June 2025. Coupang Eats, an affiliate of Korea’s leading online shopping plat - form Coupang, is the second-ranked operator in the delivery app market, having grown rapidly since its launch in May 2019, and currently holds a market share of approximately 30% based on MAU. Under the MRFTA, a group of three or fewer companies is presumed dominant if their combined market share is at least 75%. Administrative Sanctions and Litigation in Cartel Cases Information exchange cartel cases Following the comprehensive amendments to the MRFTA in 2021, the exchange of information on prices, production volumes and other competitively sensitive matters that substantially restrict com -
petition (so-called “information exchange cartels”) became explicitly prohibited. Consequently, the KFTC launched investigations into information exchange cartels in sectors including finance and construction. In the first such case, the KFTC initiated sanction pro - ceedings against four commercial banks suspected of sharing information on LTV ratios and subsequently aligning their ratios at similar levels, thereby restrict - ing competition. At the full Commission meeting in November 2024, however, the KFTC ordered addition - al fact-finding and further review. The KFTC expects to complete its supplementary investigation around April 2025 and plans to reconvene the full Commis - sion thereafter. In addition, the KFTC completed an investigation and initiated sanction proceedings against 15 banks and securities firms acting as primary dealers suspected of sharing bidding information prior to Korean gov - ernment bond auctions. It is also investigating alle - gations that bidders shared bid price information in public housing procurement conducted by the Korea Land & Housing Corporation under the comprehen - sive evaluation method since 2021. Shipping cartel case The KFTC imposed a total fine of KRW96.2 billion on 23 shipping companies operating routes between Korea and Southeast Asia, China and Japan, alleg - ing they engaged in cartel conduct regarding freight rates. The shipping companies argued their conduct was exempt from the MRFTA, claiming it constitutes legitimate joint conduct under Article 29 of the Mari - time Transportation Act (MTA). The KFTC, however, found the conduct was subject to the MRFTA because the companies failed to comply with the reporting and consultation procedures stipulated by the MTA, thus not qualifying as “legitimate acts pursuant to other laws” under the former Article 58 (currently Article 116) of the MRFTA. The Seoul High Court overturned the KFTC’s sanc - tions decision as unlawful. The court found that the MTA explicitly permits joint actions concerning maritime freight rates, and authorises the Minister of Oceans and Fisheries to intervene when rates become excessively high and unreasonable, thus precluding the KFTC from exercising regulatory authority.
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