Fair Trade Commission Signs MOU with Philippine Competition Authority... Expanding the Reach of the "K-Competition Law" in Southeast Asia

Elevating from Technical Support to Official Partnership
Relay Bilateral Consultations with the EU and Kenya

The Fair Trade Commission is joining hands with the Philippine competition authorities to foster a fair competitive environment for Korean companies in the Southeast Asian market and to further expand the influence of the "K-Competition Law." By moving beyond simple technical support and establishing an official partnership, the aim is to proactively prevent any unfair discrimination that may occur locally against Korean businesses.

Michael Aguinaldo, Chairman of the Philippine Competition Commission (PCC) (left), and Joo Byunggi, Chairman of the Korea Fair Trade Commission. Korea Fair Trade Commission.

According to the Fair Trade Commission on May 8, Chairman Ju Byungki signed a Memorandum of Understanding (MOU) in Manila, Philippines, with the Philippine Competition Commission (PCC) to cooperate on competition law enforcement, on the occasion of the 25th International Competition Network (ICN) Annual Conference.

From Technology Transfer to Strategic Partnership… Establishing a Foothold for Cooperation in Southeast Asia

This MOU elevates the bilateral cooperation, which began in 2016 with the Fair Trade Commission's support for building the PCC's case management system, to a new institutional level. Going forward, the two countries will share information and best practices on competition law enforcement in real time and strengthen enforcement capabilities through personnel exchanges.

In particular, the MOU stipulates a provision that requires prior notification and consultation if the law enforcement activities of one authority may affect the interests of the other country, providing a safety mechanism to prevent Korean companies from being unexpectedly exposed to regulatory risks locally. This is expected to serve as an important stepping stone for expanding cooperation with competition authorities throughout the ASEAN region.

"Collusion and M&A Alert for Local Companies"… Close Support for Overseas Entrants

Immediately after signing the MOU, Chairman Ju held a meeting with representatives of major Korean companies operating in the Philippines, including Hyundai Engineering & Construction, Korean Air, and Hana Bank, to hear directly about their management challenges.

At this meeting, the Fair Trade Commission shared the latest policy direction of the Philippine authorities, who are strengthening law enforcement in conjunction with the 10th anniversary of their establishment. Detailed explanations and 'guidelines' were provided on the core regulations that Korean companies might easily overlook, such as penalties for bid rigging in large-scale public infrastructure projects, enhanced monitoring in the energy sector, and the raised thresholds for business combination notification.

Chairman Ju stated, "Through the cooperative framework between the two authorities, we will serve as a strong bridge to ensure that Korean companies can compete fairly in the local market without facing unfair discrimination," pledging comprehensive support. Based on the outcomes of this visit to the Philippines, the Fair Trade Commission also plans to systematically support the overseas activities of Korean companies in negotiations to improve the Korea-ASEAN FTA and similar initiatives.

Relay Consultations with the EU and Kenya… Responding to the Digital Hegemony Race

The Fair Trade Commission's efforts have expanded beyond Southeast Asia to Europe and Africa. After consultations with Australia and Italy, the Commission also held a series of bilateral meetings with the Directorate-General for Competition (DG COMP) of the European Union (EU) and the competition authority of Kenya.

In particular, discussions with the EU covered the latest developments in the Digital Markets Act (DMA) and the revised guidelines for business combinations, reaffirming the commitment to policy cooperation for establishing fair trading order in the global digital market environment.

Chairman Ju commented, "It was confirmed that the main policy directions being pursued by the Fair Trade Commission align with global competition policy trends," adding, "We will continue to strengthen policy cooperation with major competition authorities such as the EU and steadily enhance our institutional frameworks and enforcement capabilities to effectively respond to changes in the market environment."

This content was produced with the assistance of AI translation services.