S. Korea-EU competition accord goes into effect

By Koh Byung-joon
SEOUL, July 2 (Yonhap) -- An agreement between South Korea and the European Union
aimed at increasing cooperation on anti-competitive activities took effect
starting this month, Seoul's corporate watchdog said Thursday.
The move comes after both sides signed the agreement in a summit meeting held in
Seoul last May between President Lee Myung-bak and his EU counterparts, according
to the Fair Trade Commission (FTC).
Under the accord, they promised to increase bilateral cooperation in clamping
down on anti-competitive corporate activities in their markets.
The agreement was made as the need is rising for cooperation in investigating and
punishing international cartels and activities deemed to be hampering fair market
competition.
South Koran companies also face a growing number of investigations for their
alleged involvement in such business practices.
The FTC said that a total of 1.72 trillion won (US$1.36 billion) in fines has
been levied by overseas corporate watchdogs on South Korean companies since 1996,
41.4 billion won of which was imposed by the EU.
The accord with the EU will help South Korean companies reduce the risk of being
investigated by the EU authorities over anti-competition practices, the FTC
earlier said.
The accord is the first one that South Korea signed with a foreign country and it
is the fourth of its kind for the EU following similar agreements with the United
States, Canada and Japan.
South Korea is seeking to sign such accords with the United States, China and
other countries, the watchdog said.
kokobj@yna.co.kr
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