Imputed Liability For Anti-trust Violations

Under Korean law, a third party (a shareholder, parent or affiliated company) that is closely related to a company that is found have violated the MRFTA may be considered directly or indirectly liable for such company’s violation.

Keum Seok Oh, Seong Un Yun and Rosa B. Kim

Since its establishment in 1980, the Korean Fair Trade Commission (KFTC) has regulated anti-competitive activities under the Monopoly Regulation and Fair Trade Act (MRFTA), Korea’s general competition law. Various situations have raised the issue of the liability of third parties (e.g., a shareholder, parent or affiliated company) closely related to a company that has violated the MRFTA. The KFTC has found direct liability in the event a third party directly instructed the company involved to violate the MRFTA, as well as imputed liability in light of circumstantial factors such as instrumentality and control.