Lee & Ko has one of Korea’s largest and preeminent antitrust & competition law practices, as continuously recognized by renowned international legal publications over the past several years.
Members of our group include expert attorneys licensed in Korea and other foreign jurisdictions, antitrust specialists (including accomplished in-house economists), former high-ranking government officials and adjudication
officers of the Korea Fair Trade Commission. We represent a diverse range of domestic and international clients in cases dealing with competition authorities in Korea and around the world, including the U.S. and the EU.

We boast the highest number of lawyers and antitrust specialists who were formerly employed by the KFTC,
out of all law firms in Korea. The plethora of experience our team has gained as former high ranking officials
and adjudication officers of the KTFC, as well as staff economists of the U.S. FTC & DOJ, enable our firm to provide the most insightful and effective advice in responding to any KFTC action.

Our Antitrust & Competition Practice Group provides unparalleled legal advice based on a solid understanding of our clients’
business sectors, and offers client-focused solutions tailored to address a wide range of regulatory, civil, and criminal issues.
We provide a full range of services across all areas of antitrust and competition law, which are detailed below.

Expertise

International Merger Review

The Monopoly Regulation and Fair Trade Act (“MRFTA”), Korea’s main competition law, prohibits certain M&A transactions that may have restricting effects on competition, and KFTC approval must be obtained for such activities meeting statutory thresholds.

A key component in successfully consummating complex M&A transactions is to obtain timely KFTC approval. The Antitrust & Competition Practice Group has substantial experience in obtaining antitrust clearance for some of the largest domestic and offshore M&A transactions. The Group works with clients through each and every step of the process, including transaction structuring, preparing and filing notifications, and negotiating remedies with regulators. The Group also closely collaborates with specialized economists as necessary to carry out in-depth analyses of the relevant markets and competition-restricting effects.

The Antitrust & Competition Practice Group also has vast experience in securing approvals from competition authorities in jurisdictions around the world, for M&A transactions involving a variety of industries. The Group works extensively with local counsel in various jurisdictions to ensure timely and cost-effective procurement of approvals.

Cartel Investigations

The Antitrust & Competition Practice Group has in-depth knowledge and expertise in assisting clients with cartel investigations launched by domestic and foreign regulatory agencies. The Group has a long and consistent track record of successfully defending clients accused of participating in collusive activity with competitors. As competition law enforcement has become global, so has our expertise.

The Antitrust & Competition Practice Group has substantial experience in coordinating and handling leniency applications worldwide. We work in close cooperation with local counsel and competition law authorities in many jurisdictions with active antitrust regimes. We have successfully secured leniency applications for many domestic and offshore corporate clients.

Horizontal and Vertical Agreements

The horizontal and vertical agreements among competitors or other business participants (e.g. joint venture agreements, joint development and cooperation agreements, license agreements, distribution agreements, agency agreements, supply agreements, patent dispute settlement agreements, etc.) can impact competition in the relevant market. It should be noted that even agreements between affiliated companies can potentially be held to violate competition laws. Thus, detailed review and analysis of the industry and facts surrounding each agreement is necessary to ensure compliance with applicable laws.

The Antitrust & Competition Practice Group frequently advises corporate clients on antitrust implications of horizontal and vertical agreements, based on its wealth of experience in numerous industry sectors.

Abuse of Market Dominance

The MRFTA prohibits market dominant businesses from engaging in activities that may have competition-restricting effects. The Antitrust & Competition Practice Group frequently advises some of the largest corporations from around the world regarding issues relating to abuse of market dominance. Our in-house team of highly accomplished economists conducts thorough and insightful analysis of the relevant market, enabling us to provide effective and well-rounded advice as to how the client’s market dominance is affecting competition and potential ramifications thereof.

The KFTC has expressed its intent to potentially scrutinize the assertion of intellectual property (IP) rights as abuse of market dominance, and have recently carried out this intent in several well-publicized cases. This presents a new regulatory minefield for many corporations, who in the past have exercised their IP rights without running afoul of competition laws. The Antitrust & Competition Practice Group works closely with our premier Intellectual Property Practice Group to provide the most comprehensive and in-depth advice to our clients.

Unfair Trade Practices

Since the early days of the MRFTA, the Antitrust & Competition Practice Group has advised clients on a variety of horizontal and vertical commercial arrangements, including agencies, joint ventures, franchising, e-commerce, related-party transactions, and pyramid schemes. The Group has assisted clients in ensuring that these arrangements are compliant with relevant laws, prohibiting certain acts (discriminatory practices, unfair customer solicitation, resale price maintenance, etc.) that may undermine fair dealings in the market.

The Antitrust & Competition Practice Group has extensive knowledge and experience in handling issues related to unfair trade practices, and frequently advises clients on mitigating risks and identifying creative solutions to fit our their business needs.

Standardized Contracts

The KFTC regulates standardized contracts to prevent businesses from imposing unfair terms and conditions on consumers.

The Antitrust & Competition Practice Group has long-standing experience in advising both foreign multinational and domestic clients in a variety of business areas, to ensure that their standardized contracts are legally compliant. The Group also has a successful track record of defending corporate clients against KFTC allegations and investigations of alleged unfair terms and conditions in standardized contracts.

Subcontracting

The KFTC has enacted a law strictly prohibiting large companies from engaging in unfair subcontracting practices (e.g. unilateral price decrease, unfair return of goods, etc.), against smaller suppliers of goods and services through abuse of their superior bargaining position.

The Antitrust & Competition Practice Group has helped large companies avoid subcontracting-related issues by reviewing and amending subcontracting agreements. The Group has also successfully defended clients in numerous cases involving alleged subcontracting law violations.

Compliance Programs

The KFTC actively encourages business entities to adopt internal antitrust law compliance programs aimed at preventing MRFTA violations. The adoption of such programs can also result in additional benefits, including leniency in sanctions.

The Antitrust & Competition Practice Group has advised numerous companies across various industries with respect to the design, adaptation and evaluation of custom-tailored compliance programs. With the support of the firm’s strong practice groups, we are able to provide leading-edge compliance programs to our clients.

Sector- specific Regulation

Competition law-related issues such as abuse of market dominance in specialized sectors, such as electronics, pharmaceuticals, banking, securities, insurance, telecommunications and broadcasting, etc., must be handled with professional knowledge and experience that are pertinent to the respective sector. The Antitrust & Competition Practice Group advises on sector-specific competition laws and regulations, with our leading team of attorneys recognized for their expertise in each sector.

Litigation (Civil/Criminal/Administrative)

Unfair trade practices and other competition-law related offenses not only result in administrative fines and corrective orders, but also in criminal complaints filed by the KFTC and civil lawsuits for monetary damages filed by private plaintiffs.

Our antitrust litigation specialists consist of former judges (including a former Supreme Court Justice and Head of the Administrative Court) and prosecutors, with superior expertise and experience in dealing with all types of antitrust litigation.

We have successfully handled various domestic and international cases involving allegation of unfair trade practices and other competition law related lawsuits, including class actions.

Responding to KFTC Investigations

As dawn raids are more frequently conducted by the KFTC, it is imperative for companies to understand how to immediately respond to them. The Antitrust & Competition Practice Group frequently advises corporate clients on how to coordinate a unified and efficient response to KFTC’s actions/demands, including performing compliance audits and mock dawn raids. The Group has also assisted numerous companies by being present at on-site investigations, to help guide clients through these difficult events.

Our team boasts the highest number of lawyers and antitrust specialists who were formerly employed by the KFTC, out of all law firms in Korea. The plethora of experience our team has gained as former high ranking officials and adjudication officers of the KTFC, as well as staff economists of the U.S. FTC & DOJ, enable us to provide the most insightful and effective advice in responding to any KFTC action.

Miscellaneous Competition Law Issues

Additionally, the Antitrust & Competition Practice Group has successfully defended clients against administrative/civil/criminal actions regarding advertising/labeling and mass distribution regulations, reorganization of holding companies by conglomerates, and other consumer protection laws.

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Major Cases

International Merger Review

Obtained unconditional KFTC approval on behalf of Nautilus Holdings USA Corp. with respect to its acquisition of GE Toshiba Silicones Asia Pacific Pte.,Ltd.
Obtained unconditional KFTC approval on behalf of Honeywell International Inc. with respect to its acquisition of Enref Holdings B.V.
Obtained unconditional KFTC approval on behalf of The Boeing Company with respect to its acquisition of Huneed Technologies.
Obtained unconditional KFTC approval on behalf of ERGO International AG with respect to its acquisition of Daum Direct Auto Insurance.
Represented Life Technologies in connection with the merger filing for the acquisition of Life Technologies by Thermo Fisher, valued at US$13.6 billion. This transaction was one of the largest acquisition deals in the year 2013.
Represented Lenovo Group Ltd., in connection with the merger filing for its acquisition of IBM’s x86 server business, valued at US$2.1 billion.
Represented Foster Wheeler AG (NASDAQ: FWLT) in connection with the merger filing for its proposed merger with AMEC, valued at £1.9 billion.
Represented Qatar’s sovereign investment fund in connection with its takeover of American Express Co.’s business travel division, valued at US$900 million.

Domestic Merger Review

Obtained unconditional KFTC approval on behalf of POSCO with respect to various business combinations.
Obtained unconditional KFTC approval on behalf of Korean Air with respect to its acquisition in S-Oil.
Obtained unconditional KFTC approval on behalf of Lotte Shopping with respect to its acquisition of Big-Mart.
Obtained KFTC approval on behalf of CJ O Shopping with respect to its acquisition of On Media. Represented Lotte Group in connection with the merger filing for its JV transaction with Nestlé S.A., in regards to the instant coffee market, with an initial investment of 50 billion KRW (US$46.4 million).

International Cartels

Obtained a not-guilty ruling on behalf of foreign S-RAM manufacturers investigated by the KFTC. Represented LCD panel manufacturers in a global investigation into cartel activity.
Obtained substantial fine reductions on behalf of copying paper manufacturers investigated by the KFTC.
Represented air freight companies in a KFTC investigation into international fuel surcharges. Represented a data storage company as the lead counsel before competition authorities in various jurisdictions.
Representing a major international bank in connection with the KFTC’s investigation of alleged international cartel on LIBOR.
Representing an eminent global banking and financial services company in connection with the KFTC’s investigation of alleged international cartel on FX rate rigging.
Representing a multinational electrical equipment manufacturing company and its U.S. subsidiary, in connection with the KFTC’s investigation of the international auto parts cartel.
Representing a large foreign corporation in connection with KFTC’s investigation of the capacitor manufacturers’ cartel (currently also being investigated by competition law authorities in the U.S., EU, Japan, Taiwan, and China).

Domestic Cartels

Obtained major fine reduction in a LPG cartel case that entailed the highest fine imposed in KFTC history.
Obtained major fine reduction on behalf of domestic airlines investigated by the KFTC for air fare collusion.
Obtained major fine reduction on behalf of five oil companies investigated by the KFTC for collusion on oil supplies to the military.
Obtained major fine reduction on behalf of five caustic soda manufacturers investigated by the KFTC.
Obtained fine withdrawal on behalf of seven bus transportation companies investigated by the KFTC.
Obtained fine withdrawal on behalf of twelve banks investigated by the KFTC for “giro” fee collusion. Represented numerous multinational and domestic companies in filing leniency applications.
Represented a domestic energy conglomerate and completely reversed KFTC’s decision to impose approximately USD$400 million in fines, despite leniency filings by another defendant.
Represented Dong-A Pharmaceutical, the largest pharmaceutical company in Korea, in the first “pay-for-delay” case brought by the KFTC and successfully appealed by obtaining an 80% reduction in fines for Dong-A.

Abuse of Market Dominance

Obtained closure of the KFTC’s investigation into the abuse of market dominance in the e-commercecertification market (no action taken by the KFTC).
Obtained a not-guilty ruling in the KFTC’s investigation into a major air line’s abuse of market dominance with respect to agency incentive scheme.
Obtained a major fine reduction in the KFTC’s investigation into a major steel company’s abuse of market dominance vis-à-vis logistics companies.
Obtained a major fine reduction in the KFTC’s investigation into a major auto company’s abuse of market dominance vis-à-vis auto parts agencies.
Obtained a not-guilty ruling in the KFTC’s investigation into a major electronic company’s abuse of market dominance with respect to price cuts.
Represented Samsung Electronics in regards to abuse of dominance charges brought by Apple at the KFTC, successfully obtaining a complete dismissal of all charges on behalf of the client in February 2014.

Unfair Trade Practices

Obtained a major fine reduction on behalf of a major steel company in a case of abuse of bargaining power vis-à-vis steel sheet importers.
Obtained a major fine reduction on behalf of a major auto manufacturer investigated by the KFTC for conditional transactions involving auto parts agencies.
Obtained a fine withdrawal on behalf of a major conglomerate investigated by the KFTC for unfair support to its affiliates.
Obtained a not-guilty ruling on behalf of a major electronic company investigated by the KFTC for unfair support to its affiliates.

Standardized Contracts

Successfully defended a KFTC investigation into mileage-related standardized contracts used by airlines.
Obtained a not-guilty ruling in the KFTC’s investigation into the unfairness of standardized contracts used by an open-market business operator.
Reviewed and amended various standardized contracts used by e-commerce businesses, web-search businesses, and other on-line businesses.

Subcontracting

Obtained a not-guilty ruling in the KFTC’s investigation into a major electronics company’s alleged subcontracting violations against a cell phone parts supplier.
Obtained a major fine reduction on behalf of an auto parts company investigated by the KFTC for subcontracting violations.
Obtained a not-guilty ruling in the KFTC’s investigation into a major electronics company’s alleged subcontracting violations against a LCD parts supplier.