On June 11, 2013, the Korea Fair Trade Commission (the “KFTC”) announced amendments to the Notification on Detailed Criteria for the Imposition of Administrative Surcharges (the “Administrative Surcharge Notification”), which took effect on June 17, 2013.
The amended Administrative Surcharge Notification (the “Amended Notification”) introduces “detailed assessment criteria charts” to evaluate and assign points to a violation of the Monopoly Regulation and Fair Trade Act of Korea (the “MRFTA”) depending on the severity of such violation while raising the overall administrative surcharges amounts applicable to unreasonable concerted acts (i.e., cartels). The key amendments include the following.
- Under the Amended Notification, base surcharge rates will be determined by points assigned to different types of violations of the MRFTA in accordance with the detailed assessment criteria charts.
- With five different levels of severity determined by points assigned in accordance with the detailed assessment criteria charts, the lower limits of the base surcharge rates applicable to unreasonable concerted acts (i.e., cartels) are adjusted upward.