If I make it similar to a famous company's trade name, does it violate the Unfair Competition Prevention Act?

When deciding a company's trade name, you must not use a trade name that could be mistaken for another person's business for an improper purpose.

In particular, if you use a trade name similar to another person's trade name that is widely recognized within the country and thereby cause confusion with another person's business facilities or activities, this violates the Unfair Competition Prevention Act.

In such a case, since you would have committed an act of unfair competition, there is a risk of being sued for damages by the other party.

In addition, if it is recognized that you committed a violation of the Unfair Competition Prevention Act, you may be subject to imprisonment for up to three years or a fine not exceeding 30 million won, and criminal liability may follow.

Points to note when deciding a company's trade name

▶ In principle, the trade name of a corporation can be decided freely, but you must not use a trade name that could be mistaken for another person's business for an improper purpose.

A person who violates this is subject to an administrative fine not exceeding 2 million won under the Commercial Act.

Here, an 'improper purpose' refers to the intention, by using a certain name as one's own trade name, to make the general public mistake one's own business for another person's business indicated by that name.

In order to understand this issue in detail and prepare appropriate countermeasures, it is advisable to seek advice from and obtain help from an attorney.