Rulings on Efficiency Defense
The respondent claimed that the proposed merger would generate
efficiencies worth a total of KRW 33.8 billion by consolidating its domestic
corporation in the U.S. and distributors in the domestic market, raising
capacity utilization rate and expanding market share to 10% in China,
integrating technology and sales skills in the digital piano category,
specializing production processes by factory home and abroad, and saving
material cost. However, the KFTC did not accept the efficiency claims by
pointing out that the most of the alleged efficiencies were not merger-specific,
nor directly relevant to competition landscape in the domestic market and
domestic consumer welfare, nor feasible.