Friday, July 4, 2008
Analysis of the Korean Supreme Court decision concerning “unreasonableness” in the abuse of a market dominant position case involving Posco
Posted by D. Daniel Sokol
ABSTRACT: On Nov. 22, 2007, Korea's Supreme Court rendered its decision in the market dominant position case against Posco. The significance of the Court's decision will be made clearer as the KFTC turns to other market dominance investigations such as those of the major foreign companies Intel and Qualcomm.
This paper reviews the trends in the KFTC’s latest regulations and policies on abuse of a market dominant position, and analyzes the statutes, regulations, KFTC Guidelines, and court standards regarding determination of abuse of a market dominant position in light of latest global trends. It then summarizes the major points of the Posco decision, and presents the impacts of the Posco decision on KFTC’s enforcement activities and the implications on major companies conducting business in Korea.