Case Responding to a Fair Trade Commission Investigation | No Suspicion of Crime in Unfair Support Among Affiliates of a Manufacturer

The company that requested assistance with the Fair Trade Commission investigation was an affiliate that produces and distributes electronic components in Korea.

The client came under investigation amid suspicion that, in the course of jointly using research and development personnel and facilities between the parent company and the affiliate, greater profit had flowed to certain affiliates.

The Fair Trade Commission focused on examining whether this transaction structure was "an internal transaction within the normal range, or an unfair support act."

Accordingly, in order to prevent unnecessary misunderstanding and the expansion of suspicion from the early stage, the client requested the assistance of an attorney specializing in corporate matters in responding to the investigation.

The corporate attorney closely examined the research and development and the use of facilities and analyzed the overall transaction structure.

In that process, the attorney prepared materials comparing the matter with the industry average unit price and with transaction cases in similar industries, and thereby proved that the internal transaction conformed to market standards.

Through this, it was possible to clearly explain that the transaction was not the provision of preferential treatment but a normal management activity.

The firm carefully organized the internal approval system, meeting minutes, regulations, and the like to secure procedural legitimacy.

In particular, it emphasized that no specific executive or specially related person intervened in the decision-making, thereby preemptively foreclosing the possibility of private gain.

In addition, it demonstrated that the cost-allocation standard had been prepared in advance in accordance with internal regulations, thereby proving that it was not an intentional support act.

The corporate attorney organized the questions expected during the investigation process, and established a consistent system of responses through mock interviews with the executives and staff.

By clearly distinguishing between the materials that could be submitted and the grounds for non-disclosure, the attorney minimized the submission of materials that could give rise to unnecessary misunderstanding.

An investigation by the Fair Trade Commission does not simply verify accounting figures; it closely examines the background of the transactions, the pricing structure, and the internal procedures.

If a company responds entirely on its own, a minor suspicion may therefore expand and lead to a penalty surcharge or criminal punishment.

At this firm, corporate attorneys who have handled numerous fair trade cases form a task force and provide structured assistance throughout the entire process, from data analysis and strategy development to responding to the investigation, beginning at the early stage.

In addition, through tailored strategies that take into account the company's long-term risk management and management stability, the firm focuses on minimizing the client's legal risk.

If you are facing an investigation by the Fair Trade Commission, 🔗Legal Consultation Bookingmay be used to develop an initial response strategy together with a corporate attorney.