② The categories or standards for unfair trade practices shall be prescribed by the
Presidential Decree.
「Enforcement Decree of the MRFTA」6
(Appendix 1) Types of and Criteria for Unfair Business Practices
6. Abusing Dominant Position
"Unreasonably taking advantage of one’s bargaining position in transacting with others"
as stipulated in Subparagraph 4 of Article 23 (Prohibition on Unfair Business Practices)
Paragraph (1) of the Act means as follows:
(1) ~ (3) omitted
(4) Offering disadvantages
By methods other than those in the above Subparagraphs 1 to 3, one establishes or alters
transaction conditions to the disadvantage of one's transacting partner, or gives the
partner disadvantages in the execution process of the transaction.
2. Prohibition on unfair trade practices
1) Purpose and general requirements
Under the MRFTA, unfair trade practices are prohibited for the purpose of protecting
fairness in competition itself as well as the interests of competitors and consumers.
Accordingly, the meaning of fair trade goes beyond fair competition and includes not only
the fairness in the means or methods of competition, but also anti-competitiveness and the
fairness of the terms of trade. Conducts that might restrict fair competition are listed in
Article 23(1) of the MRFTA. According to Paragraph 2 of this Article, the categories or
standards of unfair trade practices are specified in Article 36(1) of the Enforcement Decree of
the MRFTA. Under the Types of and Criteria for Unfair Trade Practices in Addendum 1-2,
related to Article 36 of the Enforcement Decree, conducts, such as collective refusal to deal,
discrimination in favor of affiliated corporations, and unjustifiable discount, are recognized
as acts of unfair trade practice if they are carried out “without justifiable reasons” while other