The High Court ruled that the KFTC’s actions against discriminatory act in automobile
installment financing were unlawful for the following reasons.
The transaction counterpart of discriminatory treatment could include not only a direct
counterpart, but also an indirect counterpart who depended on the price or terms of
transaction of the direct counterpart. However, in the case, non-affiliated installment
financing companies could not be a counterpart of the discriminatory treatment since they
had no trade relations with Hyundai-Kia Motors. Therefore, it was difficult to view that
Hyundai-Kia Motors had discriminated in favor of Hyundai Capital against non-affiliated
installment financing companies.
However, the car buyers who were direct counterparts of the transaction with Hyundai-Kia
Motors could be seen as a transaction counterpart under the MRFTA, but they selected by
themselves the installment loan conditions of Hyundai-Kia Motors among various conditions
offered in advance. Accordingly, it was somewhat difficult to view that there had been an act
of discrimination.
Therefore, the Court held that the KFTC’s actions against discrimination in automobile
installment financing were unlawful, and reversed the corrective order, surcharge and order to
announce the receipt of corrective actions.