'Business Withdrawal Restriction' Busan Car Repair Association Sanctioned by Fair Trade Commission

Prohibited Acts for Business Associations

[Image source=Yonhap News]

The Busan Automobile Inspection and Maintenance Business Association, which restricted the withdrawal of its member businesses, will face sanctions from the Korea Fair Trade Commission (KFTC).

On the 6th, the KFTC announced that it would impose corrective orders on the Busan Automobile Inspection and Maintenance Association for prohibited acts by business associations.

According to the KFTC, the Busan Automobile Inspection and Maintenance Association had a regulation in its articles of association restricting the voluntary withdrawal of member businesses, and despite members expressing their intention to withdraw between 2021 and 2022, the association restricted their withdrawal based on this regulation.

The KFTC judged that such actions constitute prohibited acts by business associations that unfairly restrict the business activities of member businesses.

Since joining the Automobile Inspection and Maintenance Business Association is not mandated by laws such as the Automobile Management Act, the decision to withdraw should be determined by the free will of the member businesses.

The KFTC stated, "We will continuously monitor illegal acts by business associations that undermine fair and free competition order, and if violations of related laws are detected, we plan to strictly sanction them in accordance with principles."

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