Korean Competition Law and Practice in Perspective

1
Korean Competition Law and Practice in
Perspective

• December 2007
• Dr. Youngjin Jung
• Yulchon

2
Origin of US/Korean Competition Law

• US
• Populist View
• Chicago Schools View
• B. Korea
• Fair and Free Competition
• Regulation of Economic Concentration

3
Enforcement Mechanism

• US
• Multiple Stakeholders (private litigation)
• Judicial Decision-Making (common law system)
• B. Korea
• KFTC
• Limited Role of Courts

4
Cartel Regulation (I)

• US
• Section 1 of Sherman Act
• Horizontal Vertical Restraints
• B. Korea
• Article 19(1) of MRFTA Horizontal Restrains
  only?
• Article 19(5) statutory presumption

5
Cartel Regulation (II) Rule of Reason vs. Per se
Illegal

• US
• Rule of Reason vs. Per Se Illegal
• Korea
• Rule of Reason vs. Per Se Illegal

6
Cartel Regulation (III) Conscious Parallelism

• A. US
• Oligopolistic Interdependence
• Plus Factors
• B. Korea
• Plus Factors
• Amendment

7
Cartel Regulation (III) re regulated industry

• US
• Trinko / Credit Suisse (implied immunity)
• Korea
• Statutory Exemption
• Administrative Guidance

8
Cartel Regulation (IV) Leniency

• US
• Individual Corporate Leniency
• (i) Implication of discovery, (ii) Paperless
  application
• (iii) marker system
• Korea
• Corporate Leniency

9
Vertical Restraints

• A. US
• (Minimum) Resale Price Maintenance
• Tying
• Tying vs. Exclusive Dealing
• B. Korea
• Unfair Trade Practices
• Abuse of Market Dominance

10
Monopolization (I)

• A. US
• Leverage Theory
• Attempt to Monopolize
• B. Korea
• Abuse of Market Dominance

11
Monopolization (II) Microsoft

• A. US
• the concept of monopoly maintenance
• Separate Product
• - backward looking vs. forward-looking
• B. Korea
• Statutory foundation
• dynamic leverage theory vs. two-sided
  market
• predatory pricing

12
Monopolization (III) essential facility doctrine

• A. US
• Aspen Skiing
• Trinko
• B. Korea
• Statutory foundation
• N.B. Competition Agency as a Regulator

13
Merger Control (I)

• A. US
• Substantial Lessening Competition (SLC)
• B. Korea
• Substantial Lessening Competition (SLC)
• CR1/CR3 vs. HHI
• Unilateral Effect vs. Coordinated Effect

14
Merger Control (II) Market Share

• US
• Philadelphia National Bank case
• General Dynamics case
• B. Korea
• Statutory Presumption of SLC

15
Merger Control (III) Notification

• A. US
• H-S-R Pre-merger Notification
• B. Korea
• Post-merger notification
• Pre-merger notification
• Foreign-to-foreign merger notification
• Fund

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• Thank you.