{"id":110790,"date":"2025-08-07T10:21:30","date_gmt":"2025-08-07T10:21:30","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=110790"},"modified":"2025-08-14T13:45:02","modified_gmt":"2025-08-14T13:45:02","slug":"south-korea-competition-litigation","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/south-korea-competition-litigation\/","title":{"rendered":"South Korea: Competition Litigation"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-110790","comparative_guide","type-comparative_guide","status-publish","hentry","guides-competition-litigation","jurisdictions-south-korea"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Yulchon<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/03\/yulchon-llc.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Yulchon<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/03\/yulchon-llc.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Competition Litigation laws and regulations applicable in South Korea<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of conduct and causes of action can be relied upon as the basis of a competition damages claim?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Korea, any violation of competition law may give rise to a competition damages claim, including:<\/p>\n<ul style=\"padding-left: 0;\">\n<li>Cartels (e.g., price fixing, bid-rigging);<\/li>\n<li>Abuse of dominance (e.g., predatory pricing, refusal to deal); and<\/li>\n<li>Unfair trade practices (e.g., coercive dealing, resale price maintenance).<\/li>\n<\/ul>\n<p>These types of anti-competitive conduct are regulated under the Monopoly Regulation and Fair Trade Act (\u201c<strong>MRFTA<\/strong>\u201d) and enforced by the Korea Fair Trade Commission (\u201c<strong>KFTC<\/strong>\u201d). Claims may also arise under sector-specific statutes enforced by the KFTC (e.g., the Fair Agency Transactions Act, Fair Transactions in Franchise Business Act, and Fair Transactions in Subcontracting Act).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required (e.g. in terms of procedural formalities and standard of pleading) in order to commence a competition damages claim?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Competition damages claims may be brought under Article 109 of the MRFTA or Article 750 of the Civil Act.<\/p>\n<p>Article 109 of the MRFTA applies only to MRFTA violations, whereas Article 750 of the Civil Act \u2013 Korea\u2019s general tort provision \u2013 also applies to violations of other sector-specific statutes enforced by the KFTC.<\/p>\n<p>Under both provisions, the claimant must prove (i) wrongful conduct, (ii) actual damages, and (iii) that the wrongful conduct caused the damages.<\/p>\n<p>Article 750 of the Civil Act also requires proof of the defendant\u2019s intent or negligence. However, Article 109 of the MRFTA shifts that burden to the defendant once a claimant establishes violation, damage, and causation. This makes Article 109 of the MRFTA more favourable for MRFTA-based claims.<\/p>\n<p>Claims under Article 109 of the MRFTA may be brought only against business entities or trade associations, while claims under Article 750 of the Civil Act may be brought against both individuals and entities.<\/p>\n<p>Claimants may bring stand-alone claims without waiting for a KFTC finding, but this is rare due to the difficulty of proving the anti-competitive conduct.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available to claimants in competition damages claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Monetary Damage<\/strong>s: Claimants may seek monetary damages through Article 109 of the MRFTA or Article 750 of the Civil Act. Claimants may also request provisional remedies (e.g., attachment orders) to secure recovery.<\/p>\n<p><strong>Punitive Damages<\/strong>: For serious violations, courts may award punitive damages of up to three times actual damages under the MRFTA and other KFTC-enforced statutes. This is a discretionary statutory cap and not automatic. The court determines the final amount based on the conduct\u2019s severity, duration, market impact, and the degree of intent or negligence.<\/p>\n<p><strong>Injunctive relief<\/strong>: Under Article 110 of the MRFTA, a claimant may seek an injunction to stop ongoing unfair trade practices, such as coercive conduct or refusal to deal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the measure of damages? To what extent is joint and several liability recognised in competition damages claims? Are there any exceptions (e.g. for leniency applicants)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean courts apply the \u201cprice-difference theory\u201d, which measures damages as the difference between (i) the claimant\u2019s actual financial position and (ii) the financial position the claimant would have been in but for the unlawful conduct.<\/p>\n<p>Courts also consider factors such as intent, foreseeability and scale of harm, economic gain, fines imposed, duration and frequency of the violation, financial condition, and remedial efforts.<\/p>\n<p>Joint and several liability is fully recognised. A claimant may seek full recovery from one or more defendants, regardless of how liability is ultimately apportioned among them.<\/p>\n<p>Leniency applicants may receive reduced fines or penalties, but remain fully liable for civil damages, jointly and severally.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the relevant limitation periods for competition damages claims? How can they be suspended or interrupted?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Competition damages claims are subject to the tort limitation periods under Article 766 of the Civil Act. A claim must be filed within the earlier of:<\/p>\n<ol style=\"padding-left: 0\" type=\"i\">\n<li>three years from the date the claimant knew or should have known of the harm and the responsible party; or<\/li>\n<li>ten years from the date of the unlawful act.<\/li>\n<\/ol>\n<p>The limitation period may be interrupted by the claimant filing a lawsuit or applying for a payment order, or the defendant acknowledging liability. In such cases, the limitation period resets.<\/p>\n<p>Suspension may occur if the claimant is legally incapacitated and lacks proper representation, or force majeure events make it legally or practically impossible to assert the claim.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which local courts and\/or tribunals deal with competition damages claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no specific courts or tribunals designated for competition damages claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the court determine whether it has jurisdiction over a competition damages claim?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Jurisdiction is determined under the Civil Procedure Act, which requires claims be filed with the district court having jurisdiction over:<\/p>\n<ol style=\"padding-left: 0\" type=\"i\">\n<li>the defendant\u2019s domicile (or principal office or place of business for entities); or<\/li>\n<li>the place of the alleged anti-competitive conduct.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the court determine what law will apply to the competition damages claim?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Courts apply either Article 109 of the MRFTA or Article 750 of the Civil Act, depending on the provision invoked by the claimant (Civil Procedure Act, Article 203).<\/p>\n<ul style=\"padding-left: 0\">\n<li>Article 109 of the MRFTA applies to MRFTA violations and shifts the burden to the defendant to disprove intent or negligence.<\/li>\n<li>Article 750 of the Civil Act applies to violations under the MRFTA and other KFTC-enforced statutes.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the applicable standard of proof?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Competition damages claims are subject to the civil standard of proof under the Civil Procedure Act.<\/p>\n<p>Claimants must prove facts to a high degree of probability, based on the totality of evidence and common experience. Scientific certainty is not required, but the evidence must persuade an ordinary person that the facts are highly likely to be true (Supreme Court Decision 2008Da6755, rendered October 28, 2010).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are local courts bound by the infringement decisions of (domestic or foreign) competition authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean courts are not bound by decisions of the KFTC or foreign competition authorities. Courts may independently assess the facts and reach different legal conclusions. The KFTC\u2019s findings can serve as persuasive, but not conclusive, evidence. Even if judicially affirmed, the KFTC\u2019s findings are not binding in civil proceedings but may carry strong or presumptive weight (Supreme Court Decision 89Daka29075, rendered April 10, 1990).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can a private damages action proceed while related public enforcement action is pending? Is there a procedure permitting enforcers to stay a private action while the public enforcement action is pending?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Private damages actions may proceed independently of public enforcement. However, claimants often file their claims after a KFTC decision due to evidentiary burden.<\/p>\n<p>Korean law provides no formal mechanism for staying private actions due to pending public enforcement. Courts are not required to stay proceedings pending public enforcement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, mechanisms are available to aggregate competition damages claims (e.g. class actions, assignment\/claims vehicles, or consolidation of claims through case management)? What, if any, threshold criteria have to be met?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean law does not permit class actions for competition damages claims, though legislation has been proposed.<\/p>\n<p>Claimants with similar factual and legal issues may file a joint lawsuit through party joinder (Civil Procedure Act, Article 53), designating one or more representatives.<\/p>\n<p>The court\u2019s judgment binds only claimants participating in the joint lawsuit, but can significantly influence subsequent lawsuits. Courts often give persuasive weight to previous decisions, making it easier for additional claimants to pursue follow-on claims based on those decisions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any defences (e.g. pass on) which are unique to competition damages cases? Which party bears the burden of proof?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While the Korean Supreme Court has not explicitly adopted the pass-on defence, it has recognized that courts may consider costs passed on to consumers when assessing actual damages (Supreme Court Decision 2010Da93790, rendered November 29, 2012). Although the defendant failed to prove causation, the Court acknowledged that pass-on could reduce recoverable damages.<\/p>\n<p>Courts have discretion to consider pass-on defences. The defendant bears the burden of proving that pass-on occurred and that the claimant suffered no actual harm. If accepted, the defence may reduce the damage award, but does not absolve the defendant\u2019s liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is expert evidence permitted in competition litigation, and, if so, how is it used? Is the expert appointed by the court or the parties and what duties do they owe?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Expert evidence is permitted where specialised knowledge or expertise is required.<\/p>\n<p>(1) Technical Advisers (Civil Procedure Act, Article 164-2)<\/p>\n<p>Appointed by the court on its own or at a party\u2019s request, technical advisers may submit written opinions, appear in court, and if permitted, question parties or witnesses.<\/p>\n<p>(2) Expert Appraisers (Civil Procedure Act, Articles 335 and 339)<\/p>\n<p>Appointed by the court at a party\u2019s request, expert appraisers provide written or oral expert opinions, often to quantify damages in cartel cases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Describe the trial process. Who is the decision-maker at trial? How is evidence dealt with? Is it written or oral, and what are the rules on cross-examination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Korean civil trials, the presiding judge serves as both fact-finder and legal decision-maker.<\/p>\n<p>Evidence may be written or oral.<\/p>\n<p>Cross-examination is generally permitted and must relate to matters raised during direct examination or reasonably related issues. Leading questions are permitted, but questioning on new matters requires the judge\u2019s approval.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does it typically take from commencing proceedings to get to trial? Is there an appeal process? How many levels of appeal are possible?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Competition damages claims typically reach trial within several weeks to a few months of filing.<\/p>\n<p>There are two levels of appeal: to the High Court, then the Supreme Court, each within two weeks of receiving the lower court\u2019s written judgment.<\/p>\n<p>The Supreme Court reviews only legal issues. If no valid legal question is raised, it may decline to hear the appeal. If it hears the appeal and finds legal error, it may reverse or remand the case; otherwise, it will dismiss the appeal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do leniency recipients receive any benefit in the damages litigation context?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Leniency recipients receive no benefit in damages litigation. The KFTC\u2019s leniency program is an entirely separate process, and does not reduce civil liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the court approach the assessment of loss in competition damages cases? Are \u201cumbrella effects\u201d recognised? Is any particular economic methodology favoured by the court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean courts assess loss based on actual damages or a reasonable estimate where precise calculation is difficult. For serious violations, courts may award punitive damages of up to three times actual damages under the MRFTA and other KFTC-enforced statutes.<\/p>\n<p>Courts consider factors such as intent, extent of harm, economic gain, fines, duration, financial condition, and any remedial efforts.<\/p>\n<p>To date, Korean courts have not recognised &#8220;umbrella effects&#8221; claims.<\/p>\n<p>No specific economic methodology is required; courts often rely on expert reports to estimate loss.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is interest calculated in competition damages cases?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Interest is governed by general tort principles under the Civil Act and accrues in two stages:<\/p>\n<ol style=\"padding-left: 0;\" type=\"i\">\n<li>5% interest accrues from the date of violation until service of process on the defendant (Civil Act, Article 379); and<\/li>\n<li>12% interest accrues from the day after service of the complaint. However, if the court awards only partial damages, the 12% rate applies from the day after judgment (Act on Special Cases Concerning Expedition of Legal Proceedings, Article 3).<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a defendant seek contribution or indemnity from other defendants? On what basis is liability allocated between defendants?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean courts recognise a right of contribution among joint infringers. Under a quasi-joint-and-several liability system, a defendant who pays more than its share may seek reimbursement from other defendants.<\/p>\n<p>Liability is apportioned based on each party\u2019s relative fault, considering intent, negligence, and contribution to harm.<\/p>\n<p>Claimants may recover the full amount of damages from any one or more defendants. If one defendant pays in full, the others are no longer liable to the claimant but may still be liable to each other.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances, if any, can a competition damages claim be disposed of (in whole or in part) without a full trial?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Competition damages claims may be resolved through alternative dispute resolution (<strong>ADR<\/strong>), such as mediation, settlement, or arbitration. However, due to the complexity of factual and legal issues, ADR is rarely used in practice.<\/p>\n<p>The Korea Fair Trade Mediation Agency (\u201c<strong>KFTMA<\/strong>\u201d) offers mediation for claims under the MRFTA and related statutes. A signed mediation agreement has the same legal effect as a court-approved settlement (MRFTA, Article 78(5)).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, if any, mechanism is available for the collective settlement of competition damages claims? Can such settlements include parties outside of the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean law permits out-of-court settlements, court settlements, and court-ordered conciliation.<\/p>\n<p>However, these are rarely used in competition damages actions due to the complexity of proving harm and liability.<\/p>\n<p>Korea does not have a class action regime for competition claims.<\/p>\n<p>The only available collective mechanism is a joint lawsuit through opt-in joinder. The effect of any settlement is generally limited to the participating parties.<\/p>\n<p>There is no legal basis for binding cross-border or non-party settlements, making large-scale collective settlements infeasible under current Korean law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the rules for disclosure of documents (including documents from the competition authority file or from other third parties)? Are there any exceptions (e.g. on grounds of privilege or confidentiality, or in respect of leniency or settlement materials)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Korean civil procedure does not allow broad pre-trial discovery. However, courts may order specific document production under limited conditions.<\/p>\n<p>(1) Civil Procedure Act:<\/p>\n<p>Parties may request document production orders if the documents are necessary and statutory criteria are met. Failure to comply with the order may lead to adverse inferences. Similar document production requests may be made against third parties, but are rarely granted.<\/p>\n<p>Courts more commonly use the factual inquiry procedure, sending non-binding requests for documents or information to financial institutions, public authorities, or regulators such as the KFTC.<\/p>\n<p>(2) KFTC Case Files:<\/p>\n<p>Under Article 110 of the MRFTA, courts may request case materials from the KFTC.<\/p>\n<p>(3) MRFTA, Article 111:<\/p>\n<p>Article 111 of the MRFTA permits courts to order production of documents necessary to prove damages. However, leniency materials are excluded, and parties may refuse production to protect trade secrets, unless the court finds the documents essential.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What procedures, if any, are available to protect confidential or proprietary information disclosed during the court process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The following procedures are available to protect confidential or proprietary information during the court process:<\/p>\n<p>(1) Confidentiality Orders (MRFTA, Article 112):<\/p>\n<p>Courts may restrict the use or disclosure of trade secrets through confidentiality orders limiting access to designated individuals and prohibiting use beyond the proceedings.<\/p>\n<p>(2) Closed Hearings:<\/p>\n<p>Court hearings are generally public, but may be closed in exceptional cases (e.g., national security). However, trade secrets are not a listed exception, so courts rarely close hearings for this reason.<\/p>\n<p>(3) Sealing Judgments:<\/p>\n<p>If a written judgment contains trade secrets, a party may request sealing or public access restrictions. Courts commonly grant such requests to protect sensitive business information.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can litigation costs (e.g. legal, expert and court fees) be recovered from the other party? If so, how are costs calculated, and are there any circumstances in which costs recovery can be limited?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Litigation costs are typically borne by the losing party. In cases of partial success, costs may be apportioned.<\/p>\n<p>In rare cases (e.g., where requiring the loser to pay would be manifestly unjust), courts may order each party to bear its own costs.<\/p>\n<p>Recoverable costs include:<\/p>\n<ol style=\"padding-left: 0\" type=\"i\">\n<li>Court fees,<\/li>\n<li>Expert or witness fees, and<\/li>\n<li>A capped portion of lawyers\u2019 fees.<\/li>\n<\/ol>\n<p>Full recovery of legal fees is uncommon. Article 109 of the Civil Procedure Act limits recoverable lawyers\u2019 fees to percentage caps set by Supreme Court regulations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are third parties permitted to fund competition litigation? If so, are there any restrictions on this, and can third party funders be made liable for the other party\u2019s costs? Are lawyers permitted to act on a contingency or conditional fee basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Third-party litigation funding is neither regulated nor prohibited under Korean law and operates in a legal grey area.<\/p>\n<p>The Attorney-at-Law Act permits contingency and conditional fee arrangements in civil and administrative cases, including competition claims. Such agreements typically involve a base fee plus a success-based component and are common in complex or high-value cases.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are the main obstacles to litigating competition damages claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Two main obstacles to litigating competition damages claims in Korea are:<\/p>\n<p>(1) Difficulty proving damages and high expert costs:<\/p>\n<p>Quantifying harm is often difficult without complex economic analysis. Expert evidence is essential but costly, and conclusions are frequently contested, leading to lengthy and expensive proceedings.<\/p>\n<p>(2) Delays from administrative appeals:<\/p>\n<p>Damages claims often follow a KFTC decision, which may be appealed. Defendants often seek to stay civil litigation pending administrative appeal, and courts frequently grant such requests. This results in years of delays, deterring claimants due to time and cost burdens.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What, in your opinion, are likely to be the most significant developments affecting competition litigation in the next five years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The most significant developments affecting competition litigation in Korea are:<\/p>\n<p>(1) More claims under sector-specific statutes:<\/p>\n<p>Actions under statutes like the Fair Transactions in Franchise Business Act and Fair Agency Transactions Act are increasing, with more franchisees, suppliers, and agents seeking redress for abusive practices.<\/p>\n<p>(2) Growth in mass individual filings:<\/p>\n<p>In the absence of class actions, mass parallel claims \u2013 especially in digital and franchise sectors \u2013 are rising. Potential legislative reform could formalize collective litigation.<\/p>\n<p>(3) Greater use of evidentiary burden-reducing procedures:<\/p>\n<p>Following the 2022 MRFTA amendments, tools such as document production orders and presumptive damages are being used more often, improving access to litigation \u2013 especially in unfair trade practices and other non-cartel conduct cases where information asymmetry is a barrier.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3138<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/110790","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=110790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}