Seoul Taekwondo Association Blocks Membership for 'Public Facility Leased Taekwondo Dojang'... Fair Trade Commission Issues Corrective Order

[Sejong=Asia Economy Reporter Joo Sang-don] The Seoul Taekwondo Association, which blocked membership registration of taekwondo dojangs renting public facilities such as school facilities, will be sanctioned by the Fair Trade Commission.

On the 21st, the Fair Trade Commission announced that it decided to impose corrective orders after detecting the Seoul Taekwondo Association’s establishment of a new regulation restricting the registration of sports facilities and similar organizations, thereby limiting the membership registration of taekwondo dojangs renting sports facilities.

According to the Fair Trade Commission, in February 2018, the Seoul Taekwondo Association introduced and enforced a clause in the 'Dojang Registration and Management Regulations,' which are the association’s membership rules for taekwondo dojangs, stating that "registration of sports centers and similar organizations may be restricted to protect members’ rights."

The Fair Trade Commission judged that the purpose of the Seoul Taekwondo Association in establishing this clause was to protect the vested interests of existing constituent businesses (members) and to prevent the spread of taekwondo dojangs renting public facilities.

Private businesses rent public facilities attached to elementary schools, etc., to open classes such as swimming, soccer, basketball, and taekwondo. The association was concerned that in such cases, minor trainees would have excellent accessibility and the tuition fees would be low. Therefore, by restricting the association registration of taekwondo dojangs operated in sports centers, the number of future business operators was limited.

In Seoul, taekwondo dojang operators must register with the Seoul Taekwondo Association for their trainees to be eligible for official examinations. Registration with the Seoul Taekwondo Association is virtually essential for operating a taekwondo dojang business. In fact, official examinations for trainees of dojangs registered as members of city and provincial associations were held several times a month, whereas unregistered dojang examinations held by the Korea Taekwondo Association were held only once in December 2016.

Accordingly, the Fair Trade Commission decided to impose corrective orders prohibiting the Seoul Taekwondo Association from engaging in the same conduct in the future, as it limited the number of future business operators.

A Fair Trade Commission official stated, "It is significant that we detected and corrected anti-competitive behavior that made it difficult for trainees to take promotion and dan examinations by prohibiting the registration of businesses renting public facilities that provide various sports classes besides taekwondo," adding, "We will continue to monitor the actions of business organizations that undermine competitive order and strictly sanction any violations of related laws in accordance with principles."