Hyundai Motors argued that the KFTC’s decision was unreasonable on the grounds that ①
raising the credit limit of Hyundai M card was intended to promote its sales; so, there was no
purpose of helping this affiliated company in a favorable position; ② considering the market
share of Hyundai Card and the amount of credit card payments for the period concerned, it
was difficult to recognize any restriction of competition; and ③ there was a justifiable reason
since the credit limit of non-affiliated companies’ cards was set differently because these
companies demanded higher interchange fees from the merchants than Hyundai Card.
The KFTC did not accept these arguments and rejected the appeal on the grounds that ①
subjective requirement was satisfied as Hyundai Motors raised the credit limit only for
Hyundai Card even though its sales were not affected by the type of credit card car buyers
who use to pay for their purchase; ② given that Hyundai Motors was a market dominant
enterprise, its raising the credit limit of Hyundai M Card forced other cardholders to use that
particular card, leading to restriction of competition; and ③ for the part of other credit card
companies, it was more beneficial to raise the credit limit even when this required reduction
of interchange fees paid by merchant stores.