The Korea Fair Trade Commission (the “KFTC”) conducted an investigation alleging that six companies including SK Energy agreed in advance on the supply amount and location in the market for fuel supply service to the United States Forces Korea (the “USFK”). In connection therewith, the agreement was executed through a tender, and the supply of fuel commenced from April 2005 to July 2016. Since the subject of the collusion was fuel used by the USFK, a key question was whether the Monopoly Regulation and Fair Trade Act of Korea (the “MRFTA”) may be applied as well as whether the statute of limitations for those involved individual employees and the companies had lapsed.
Lee & Ko’s Antitrust & Competition Practice Group represented SK Energy and argued that the collusion in this case is an export cartel that does not affect competition in the Korean market. Thus, the MRFTA should be inapplicable. Even if the MRFTA were applicable, the collusion would not have had any anti-competitive effect. Lee & Ko also argued that the statute of limitations against the companies has already lapsed. Notably, despite the lack of precedent on an individuals’ deviation from a corporation’s collusive acts, Lee & Ko effectively justified with persuasive analysis of precedent from other jurisdictions and review of legal principles that the statute of limitations against the individuals has also lapsed. As a result of the firm’s efforts, Lee & Ko successfully prevented the KFTC from seeking criminal charges against both the company and the individuals.