ITIF - The Information Technology and Innovation Foundation
10/21/2026 | Press release | Distributed by Public on 10/21/2026 15:49
KFTC Response to Fine Analysis Does Little to Rebut Evidence of Bias Against US Tech Firms
WASHINGTON-The Korea Fair Trade Commission (KFTC) issued a news release on October 21 in which it attempted to rebut evidence presented in a new report from the Information Technology and Innovation Foundation (ITIF) by explaining that the KFTC imposes antitrust fines based on "related sales" in accordance with Korean law. In response, ITIF issued the following statement from Policy Analyst Jack Nicastro:
American tech firms have long raised concerns that they face biased antitrust enforcement in Korea, and ITIF's analysis of newly compiled data shows those concerns are valid. The fines that the KFTC has imposed on U.S. firms over the last decade have been 21 times greater on average than the fines it has imposed on Korean companies.The KFTC's response to this evidence further illustrates the problem. The KFTC denies discriminating against U.S. firms by saying it 'determines the level of fines … based on related sales.' But the KFTC is the agency that determines what counts as 'related sales.' It has the option to calculate fines based on firms' sales in other markets, not just their Korean sales, which is an unfair practice-and even if it calculated all fines in a consistent way, it is still able to choose when to impose fines at all.Our analysis shows that the net effect of this discretionary system is unequal treatment based on firms' nationality. For example, over the last 10 years, 20 percent of all corporate sales have gone to Korean chaebols and 20 percent have gone to foreign firms. Yet Korean chaebols have received just 12 percent of all surcharge penalties while foreign firms have received 28.5 percent.The KFTC's practices have effectively created an unfair and unjust competitive playing field in which U.S. firms are held to a different standard than domestic firms. The KFTC should apply the same criteria to all companies, regardless of their nationality.Contact: Sydney Mack, [email protected]
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