A U.S. technology industry group has analyzed the fines imposed by South Korea's Fair Trade Commission (KFTC), claiming they are disproportionately heavier on American companies. Despite U.S. firms accounting for a smaller share of the overall business size, the actual fines they face are significantly larger.
On November 5, the Computer & Communications Industry Association (CCIA) released a report titled 'The KFTC’s Uneven Hand,' which states that out of 1,203 cases decided by the KFTC from 2016 to 2025, fines were imposed in 1,104 cases. During this period, the total amount of fines levied by the KFTC was approximately 6.7 trillion won.
The report compares the total fines with the business sizes of companies from different countries operating in South Korea. It found that U.S.-headquartered companies bore 1.523 trillion won in fines, accounting for 22.8% of the total. In contrast, South Korean companies faced fines totaling 4.809 trillion won, representing 71.9% of the total, while fines against Chinese companies amounted to only 16 billion won, or 0.2%.
However, when adjusted for business size in South Korea, the burden of fines on U.S. companies was found to be 4.2 to 6.6 times higher than that of South Korean firms. The CCIA explained that two different methods were used to estimate the business size of U.S. companies in South Korea, both indicating a higher fine burden compared to South Korean companies.
The report also noted that fines imposed on U.S. companies were concentrated among a few major cases. Fines against Qualcomm, Google, and Coupang accounted for 93% of the total fines levied on U.S. firms. The CCIA argued that the KFTC's process for calculating fines and applying revenue standards has been disadvantageous to American companies.
Furthermore, the report claimed that there are national differences in judicial review of KFTC fines. While large fines against South Korean companies have been canceled or reduced by courts, most major fines against U.S. companies have been upheld.
The CCIA urged the Office of the United States Trade Representative (USTR) to request discussions through the Korea-U.S. Free Trade Agreement (FTA) Joint Committee and to consider investigations under Section 301 of the Trade Act if necessary. It also called for improvements to the KFTC's sanction procedures, including calculating fines based on sales in South Korea regardless of nationality and ensuring companies have meaningful opportunities to present their cases.
* This article has been translated by AI.
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