Legal basis:
– MONOPOLY REGULATION AND FAIR TRADE ACT.
Market-dominant business entity means a business entity, which is a supplier or customer in a particular business area, in a position to determine, maintain, or change the price, quantity, quality, or other terms and conditions of transactions of specific goods or services either alone or together with other business entities. In deciding whether a business entity is a market-dominant business entity, its market share, whether and to what extent any barriers to enter a market exist, and the relative scale of competitors shall be comprehensively taken into account
1. Definition of a Market-Dominant Business Entity
A business entity (excluding any business entity annual sales or purchases of which in a particular business area are less than 4 billion won) shall be presumed a market-dominant business entity if its market share in a particular business area is as follows:
– The business entity’s market share is at least 50 percent in the particular business area;
– The aggregate of market shares of not more than three business entities is at least 75 percent: Provided, That business entities with less than 10 percent market share are excluded herefrom.
2. Prohibition on Abuse of Market-Dominant Position
No market-dominant business entity shall engage in any of the following practices:
– Unfairly determining, maintaining, or changing the price of goods or services;
– Unfairly controlling the sale of goods or the provision of services;
– Unfairly interfering with the business activities of any other business entity;
– Unfairly interfering with the market entry of a new competitor;
– Making an unfair transaction to exclude a competitor or substantially undermining consumer interests.
