What happens if you violate the Enforcement Decree of the Monopoly Regulation and Fair Trade Act?

Hello. We will answer in connection with a violation of the Enforcement Decree of the Fair Trade Act.

As the Enforcement Decree of the Fair Trade Act was amended, a business group whose total assets are 5 trillion won or more is designated as a business group subject to disclosure and becomes subject to disclosure obligations regarding various matters arise.

It is presumed that your company committed several violations regarding such disclosure matters.

Representative disclosure obligations include the obligation to disclose a board resolution on a large-scale internal transaction, and the obligation to disclose material matters of an unlisted company and the like.

If you violate the Enforcement Decree of the Fair Trade Act, an administrative fine may be imposed, and although the exact administrative fine varies depending on the scale of the company's assets, ordinarily a fine of 10 million won may be imposed.

However, even if this disclosure obligation is violated, if it is voluntarily corrected promptly within 10 business days, the administrative fine is exempted.

If you violate a minor disclosure obligation through slight carelessness or an error, we recommend correcting it voluntarily and quickly.

Because the details of the Fair Trade Act applied to companies may change according to amendments to the content of the Enforcement Decree, caution is needed.

In such a case, it is advisable to seek advice from an attorney with expertise in the field of fair trade and respond accordingly.