What happens if I violate the Enforcement Decree of the Fair Trade Act?

Hello. I will answer regarding violations of the Enforcement Decree of the Fair Trade Act.

As the Enforcement Decree of the Fair Trade Act has been amended, corporate groups with total assets of 5 trillion won or more are designated as corporate groups subject to disclosure, and disclosure obligations arise for various matters.

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

Representative disclosure obligations include obligations to disclose board of directors' resolutions on large internal transactions and obligations to disclose important matters of unlisted companies.

If you violate the Enforcement Decree of the Fair Trade Act, fines may be imposed. The exact fine varies depending on the size of the company's assets, but typically 10 million won may be imposed.

However, even if the disclosure obligation is violated, if you promptly self-correct within 10 business days, the fine is exempted.

If you violate a minor disclosure obligation due to slight carelessness or error, we recommend quickly self-correcting.

The Enforcement Decree of the Fair Trade Act requires caution because the detailed Fair Trade Act applied to companies may change according to amendments to its content.

In such cases, it is good to seek advice and respond from an attorney with expertise in the field of fair trade.