Hwang LEE Professor Korea University School of Law ICR Law Center/ Korea-China MRLC

1. Problems with Global Antitrust Enforcement - Enforcer Roundtable - Yale Antitrust Conference February 20, 2016 Hwang LEE Professor Korea University School of Law ICR Law Center/ Korea-China MRLC

2. Ⅰ. Fairness and Price Regulation Two track development of Antitrust in Asia Main direction - Asia aims at sound antitrust enforcement with focus on market competition contributing to globalization Korea since 21C, Japan/Taiwan in a recent decade, China after AML, 10 ASEAN countries’ introduction by 2015, etc. Concurrent - Note that many Asian jurisdictions esp. NE Asia adopted regulation over unfair trade practices Heritage for social & economic fairness & public interest based on Confucianism & community spirits Far more comprehensive than FTC Act §5 Relaxed hurdles to regulate, esp. on unilateral/vertical constraints, sometimes to protect small competitors

3. Ⅰ. Fairness and Price Regulation Price regulation as a part of economic policy to develop economy and protect short-term consumer/SME interests China: LCD cartel by Price Law 2013, Unilever 2011 Korea, China, SE Asia: made active in depressed economy Regulation over single firm exploitative pricing possible Fairness & price regulations in antitrust have own background & justification, not only b/c of immature enforcement History, culture of Confucianism/communitarianism, economic policy, judicial system, etc. Fairness doctrine may not dominate but can grow important Potential issues – conflict with global trend as seen in single firm conducts in Hi-tech industry; efficiency vs. justice; competition policy vs. industry policy

4. II. Multi-national Cooperation in NE Asia Active regional cooperation in NE Asia & ASEAN countries Official/unofficial cooperation in public enforcement in merger, monopolization, cartel Interactions between jurisdictions in case handling Expert collaboration at private level – collaborative organizations, academic conference, joint research, etc. Future – New version of Asian value? Regional cooperation in Asia coupled with fairness doctrine and local policy demand may produce a new color Different approach is already exposed in several cases, e.g. P3 Network review, but could be extended wide May become more evident as emerging markets develop and antitrust enforcement stronger

5. III. Road to Convergence Enforcement in Korea, implicative to other Asian countries Unfair trade practices, economic concentration (‘80~’90s) – satisfying demand for fairness in early adoption Cartel, monopolization (2001~2008) – gaining confidence Cartel, merger, IP abuse, SME protection (2008~present) – meeting economic policy demand Taiwan may be comparable with Korea Japanese model iscurrently comparable but have characteristic culture/system background that is not common even in Asia Chinese development path would depend on own culture, economy, political/social system Decrease of growth rate calls for increased productivity & restructuring that may shift up antitrust enforcement

6. III. Road to Convergence Impact on globalization – Convergence is expected but need attention for cooperation & scientific B/C balancing Efficiency & consumer benefit will take top priority but other goals would be pursued together China is not a battle field in cutting edge cases yet but will produce significant case laws soon Global leading rules can be coined in NE Asia thanks to economic power Bad rules drive out good? Need to pursue global convergence with full attention to regional perspective while preserving values of sound antitrust policy

7. Thanks. hwang_lee@korea.ac.kr