Research Report
Research on Unfair Support under the Fair Trade Act
Ⅰ. Research purpose and background
▶ Review of regulations on unfair support in the 「Monopoly Regulation and Fair Trade Act (‘Fair Trade Act’)」
○ The Fair Trade Act, which Korea has developed under domestic law, was enacted in 1980, significantly ahead of other developing countries.
- Adjustment of domestic economic imbalance
- Contributing to the creation of effective competition
○ Because any country is affected by the initially formed path dependency,
- There are also points for improvement in the legal system that Korea may experience.
- In other words, there are examples of directions that focus too much on unfair trade and discipline.
▶ Through the improvement of regulations on unfair support acts, it can be faithful to the original purpose of the Competition Act, such as the creation of effective competition.
○ The contribution to the net function and economy of the Fair Trade Act developed in Korea is very high.
- For example, in the competition authorities evaluation conducted by leading international competition journals, the Korea Fair Trade Commission has always maintained the top rank.
○ If the Fair Trade Act contributes to the creation of more effective competition and contributes to the improvement of the domestic economic structure,
- It will be effective in advancing the legal system.
- Reviewing the regulation of unfair support behavior Suggests improvement directions for regulations that lack legal validity
Ⅱ. Main contents
▶ Good to be considered for adherence to competition law principles
○ In the past, there was the Price Stabilization Act as a similar law before the Fair Trade Act, but it was used to control prices during war in Japan and Germany.
○ As the path dependency is reflected, it is possible to focus on the exercise of administrative authority without knowing it rather than on the creation of effective competition.
○ Reorganizing the legal system to focus on fostering effective competition is beneficial for improvement
▶ Unfair support is a provision adopted in the 1996 Amendment Act.
○ Tunneling is when a person with special power among company stakeholders dispose of company property for personal gain, and this should be controlled.
○ It plays a role as one of the fields of the legal system.
○ Provisions on acts of unfair support specifically control tunneling using stakeholders such as relatives.
▶ Since then, this provision was amended in 2013, and it performed the function
○ Due to the nature of the Korean economy, which has achieved more dynamic results than any other economic unit, the social and economic status of the country is subject to severe changes.
○ It is necessary to review in the direction of narrowing the scope of relatives recognized by the law.
○ Since the scope of relatives changes flexibly in response to changes in social beliefs, it is necessary to reexamine the scope of economic activity.
▶ Balanced review in line with the overall legal system purpose
○ When the people conduct economic activities, it is necessary to adjust them in consideration of the fact that the organization and method of adoption of economic entities change according to the relationship of friendship in the life order.
Ⅲ. Expected effectiveness
▶ Provision of data on amendments to laws that respond promptly to changes in civil society order
○ Reviewing desirable legal systems in accordance with social development and large-scale economic success in Korea,
○ Review the relevant provisions within the scope that corresponds to the current civil society order
▶ Suggesting direction for changes in policy direction
○ Reviewing the legal order expected by society in consideration of the changes of the times