Problem
Unlike other types of unfair trade practice, discrimination in favor of affiliated companies
has subjective requirements. However, in many cases, it is hard to prove the subjective
requirements since intent or purpose is an internal willingness to do something.
Thus, the intent or purpose has to be proven based on the circumstances at the time of the
conduct concerned, and the main issue was what kind of circumstances is required for the
intent or purpose to be acknowledged.
B) The ruling of the KFTC and the Supreme Court
Whereas the KFTC ruled that the installment interest rate cut by Hyundai-Kia Motors was
done with the intent or purpose of placing its affiliated company in a favorable position, the
Supreme Court determined it was hard to view that its primary purpose was to give its
affiliate an advantage.27
□ The KFTC: Subjective requirements are satisfied
The KFTC decided that the intent or purpose of placing the affiliated company in a
favorable condition was recognized.
① Considering that automobile promotion was generally offered for certain models,
regardless of the purchase method, Hyundai-Kia Motors’ reduction of the
installment interest rate only for Hyundai Capital could be seen as an act with the
intent of giving an advantage to the affiliate.
② According to its internal documents, Hyundai-Kia Motors tried to increase users
of Hyundai Capital, in various ways such as usage status data and performance
evaluation.
③ When other financing companies with a better credit rating or healthier financial
structure than Hyundai Capital requested Hyundai-Kia Motors to do a transaction
in the same terms, the company did not consider nor respond to the request.