This is a case of six graphite electrode manufacturers (with a
consolidated market share of approximately eighty percent of the global
market), holding multiple meetings abroad to reach and implement
agreements on price-fixing and market allocation in the global market
including Korea.
The KFTC succeeded in investigating and sanctioning what it identified
as an international cartel, without clear statutory grounds nor any legal
precedent regarding the extraterritorial application of Korean competition
law.
Some respondents appealed the KFTC to court alleging lack of statutory
grounds nor any legal precedent regarding the extraterritorial application of
Korean competition law, however, the KFTC’s decision regarding the
extraterritorial application was supported at court in both substantive and
procedural aspects.
Following the case, in 2004 the MRFTA was amended to establish the
statutory grounds necessary for extraterritorial application, improve
provisions concerning service procedures and promote international
cooperation through provisions that address the intrinsically unilateral
aspect of extraterritorial application.
This case also provided the necessary momentum for active law
enforcement on international cartels, leading to successful prosecution of
other international cartels including vitamin, paper and air freight cartels.