SOUTH KOREA Trends and Developments Contributed by: John H. Choi, Changhun Lee, Hyunah Kim and Jae-Hyuk Choi, Shin & Kim
Shin & Kim 23F, D-Tower (D2) 17 Jongno 3-gil Jongno-gu Seoul 03155 Korea Tel: +82 2 316 4232 Fax: +82 2 756 6226
Email: jhchoi@shinkim.com Web: www.shinkim.com/eng/
Introduction In Korea, the legal framework for addressing car - tel conduct is established under the Monopoly Regulation and Fair Trade Act (MRFTA). The Korea Fair Trade Commission (KFTC), as the enforcement authority of the MRFTA, is empow - ered to issue remedial orders, impose surcharges on companies found to have engaged in cartel activities, and refer such cases to the prosecu - tors’ office for potential criminal proceedings. If a company wishes to challenge the KFTC’s imposition of remedial orders or surcharges, it may file an administrative lawsuit seeking can - cellation of those actions. The fully amended MRFTA, which came into effect on 30 December 2021, introduced several key revisions related to cartel enforcement. Notably, the amendment explicitly classifies information exchanges as a type of cartel conduct – marking a significant development in the regulation of cartels. Recent major KFTC and court decisions have continued to shape the interpretation and enforcement of cartel regulations as follows. The KFTC’s Recent Regulation of Cartels The KFTC, in line with other foreign competition authorities, actively regulates cartels. Accord - ing to the KFTC’s White Paper and official sta -
tistics, of the 3,454 cases where administrative surcharges were imposed by the KFTC between 1981 – when the MRFTA was first enforced – and 2023, roughly 27% (930 cases) involved cartel conduct. Notably, cartel-related cases accounted for KRW7.37 trillion in surcharges, representing about 66% of the total KRW11.18 trillion in administrative surcharge imposed dur - ing this period. In 2023, the KFTC handled a total of 65 cartel cases. The majority were bid-rigging cases (51), followed by price-fixing cases (12). Surcharges were imposed in 47 of all cartel cas - es, and three were referred to the prosecutors’ office for potential criminal prosecution. Major recent cartel cases pursued by the KFTC are outlined below. Furniture companies case In February 2025, the KFTC announced its deci - sion to impose a total surcharge of approximate - ly KRW18.3 billion, along with remedial orders, on 20 furniture companies (the “companies” ) for colluding in bids to supply storage units to be used in new apartments. Four of the 20 furni - ture companies were referred to the prosecutors’ office for potential criminal charges.
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