Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

The KFTC may impose an administrative fine ('penalty surcharge'):
- for restrictive agreements: the fine may reach 10% of the turnover generated by the sale of the relevant goods or services during the period of infringement or, where no relevant sales turnover was generated or it is difficult to calculate the relevant sales turnover, a fine not exceeding KRW 2 billion (EUR 1.4 million);
- for an  …

Fines

The KFTC can issue corrective orders on the MRFTA infringers. Corrective orders encompass orders against the infringer to cease and desist from continuing violation, to take certain actions such as the rescission of unlawful agreements, and also to make a public notice of the corrective order.

Cease and desist orders

The KFTC may impose an administrative fine ('penalty surcharge'):

- for restrictive agreements: the fine may reach 10% of the turnover generated by the sale of the relevant goods or services during the period of infringement or, where no relevant sales turnover was generated or it is difficult to calculate the relevant sales turnover, a fine not exceeding KRW 2 billion (EUR 1.4 million);

- for an abuse of a dominant position: the fine may reach 3% of the turnover derived from sales or, where no relevant sales have been made or it is impracticable to compute sales a fine not exceeding KRW one billion (EUR 721.213).

From 19 October 2017, the amount of the fine may be increased by 100% for repeat infringements.

The KFTC has a leniency program which grants immunity from all or part of the administrative fines. A party who comes forward first may be eligible for full immunity; a party who provides evidence of a cartel is eligible for partial leniency (50% reduction in administrative fines).

Under the amnesty plus scheme, a party that does not qualify for full immunity but reports another cartel (unrelated to the initial cartel) is eligible for an additional reduction of the administrative fines for participating in the initial reported cartel. If the second cartel is of lesser significance than the first, the fine reduction may be of up to 20% of the fine which would otherwise be incurred. If the second cartel is significantly more important than the first, the applicant may be granted a reduction of between 30-100% of the administrative fine for the first cartel. A party that has coerced other firms to either join or remain in the cartel is excluded from such immunity.

In March 2016 a new provision was introduced to the MRFTA to prevent undertakings from taking advantage of the leniency program to commit repeat infringements. Under amended Article 22-2(2), the beneficiary of leniency who engages in another cartel may not apply for leniency for it before five years have lapsed from the previous leniency reduction or exemption.

Detailed rules regarding Korea's leniency program can be found in the KFTC's Notification on Implementation of Cartel Leniency Program, which was last amended in April 2016 and came into effect on 30 September 2016.

Leniency

The KFTC may refer a case to the Prosecutor's Office for criminal sanctions to be applied. Before 2013, the KFTC was free to decide whether or not to refer the case to the Prosecutor's Office. Under amendements made to the MRFTA in June 2013, three Government agencies, the Chairman of the Board of Audit, the Administrator of the Public Procurement Service and the Small and Medium Business Administration are now entitled to make a request for the referral of a case to the Prosecutor's Office, which is binding on the KFTC. However, the amended Act expressly provides that the abovementioned provisions may not apply to a a leniency applicant. 

Individuals can be subject to either imprisonment of up to three years or a criminal fine of up to KRW 200 million (EUR 140.242). Companies also face a criminal fine of up to KRW 200 million.

Global Competition Law

1286. Fines

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Les notions juridiques connexes

1286. Fines

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise