KFTC Proposes Revisions to Guidelines on Unfair Support and Improper Provision of Benefits to Specially-Related Parties: Specific Considerations for Wholly-Owned Subsidiaries(Korea’s Domestic Version of EU’s State Aid and FSR Rationales?)
2025.04.22.
On March 27, 2025, the Korea Fair Trade Commission (the “KFTC”) proposed draft revisions to two key enforcement guidelines under the Monopoly Regulation and Fair Trade Act (the “MRFTA”): the Guidelines for Review of Unfair Support and the Guidelines for Review of Improper Provision of Benefits to Specially-Related Parties. These draft revisions are open to public comment until April 17, 2025.
The draft revisions aim to provide clearer standards for assessing alleged violations under Article 45(1)(9) (unfair support) and Article 47 (improper benefits to specially-related parties) of the MRFTA – in particular, by incorporating specific considerations for wholly-owned subsidiaries into the analysis.
Foreign companies doing business in Korea – especially through wholly-owned Korean subsidiaries – should take note of these draft revisions and their implications. Unlike most foreign jurisdictions, Korea regulates intra-group support and provision of benefit under its competition laws – and enforcement is gradually expanding beyond traditional targets.
Learn more about the proposed draft revisions and their implications in our Yulchon Legal Update.
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