[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) announced on the 26th that it plans to share law enforcement experiences regarding merger reviews of airlines facing management difficulties due to the COVID-19 crisis, as well as cases of collusion and exploitative price increases, during a video conference hosted by the OECD Competition Committee attended by key competition authorities' law enforcement officials. The meeting will be held over two days, on the 26th and 28th.
This video conference will focus on two topics related to the COVID-19 crisis: ▲merger reviews and ▲unfair trade practices. Discussions will cover the criteria for merger reviews in industries struggling due to the COVID-19 crisis, and policies and law enforcement directions to effectively prevent unfair practices such as collusion and exploitative price increases that may arise in crisis situations.
At the meeting, the KFTC will introduce a recent case recognizing the defense of a non-viable company in rehabilitation, specifically the "Jeju Air's acquisition of Eastar Jet shares." Earlier in April this year, the KFTC determined Eastar Jet as a "non-viable company" under the Fair Trade Act and recognized it as an exception to the "restriction on anti-competitive mergers."
A KFTC official stated, "How to enforce competition law and operate competition policy during the COVID-19 crisis is a challenge faced not only by our KFTC but also by competition authorities worldwide," adding, "We expect this to be an important opportunity to share the KFTC’s law enforcement standards and cases during crisis situations and to strengthen practical law enforcement cooperation systems and collaborative relationships with major competition authorities."
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