Fair Trade Commission launches on-site investigation into CJ trademark royalties and imposes fines for major collusion
The Fair Trade Commission has begun an on-site investigation into 7day, CJ Group’s trademark usage fees and internal transaction practices. During the same period, investigations and sanctions have continued, including fines of 4companies 7,476hundred million won related to a starch collusion case.
The Fair Trade Commission (FTC) has begun an on-site investigation into 7day, CJ Group’s trademark usage fees and internal transaction practices. The investigation, in connection with the fact that 54% of the company’s revenue is recorded as trademark-related income, increases uncertainty over key items from an investor perspective.
In this on-site investigation, the FTC is examining the appropriateness of trademark royalties and whether there was improper support among affiliates. Earlier, the FTC also conducted an on-site investigation of the Hanwha Group focusing on the same issues.
On the same day, the FTC imposed fines totaling 4hundred million won on 7,476companies that participated in starch-related collusion. The FTC determined that the case was a collusion case that occurred domestically and finalized the sanctions.
The Fair Trade Commission has also launched an investigation into container transportation collusion in China, examining whether there was any damage in South Korea. It plans to expand the scope of the investigation to include cases of damage in South Korea resulting from overseas transactions.
In another matter, the Fair Trade Commission confirmed signs that overseas semiconductor distributors, including NXP and ADI, controlled prices with their business partners and began sanction procedures. The fact that investigations into and sanction procedures against the distributors involved were8publicly disclosed.
The investigation and administrative fine were the result of enforcement activities carried out between7and8by the Fair Trade Commission. The Fair Trade Commission is conducting investigations concurrently across multiple areas, including trademark royalties, collusion, and control of distribution prices.
The companies concerned are currently subject to investigation by the Fair Trade Commission, and the possibility of additional on-site investigations or follow-up measures by the commission remains. The Fair Trade Commission said it would decide on additional sanctions if necessary based on the investigation results.