 |
Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] The Seoul High Court has overturned a KRW 234.9 billion fine imposed by the Fair Trade Commission on Samsung Electronics and its affiliates over alleged unfair support to Samsung Welstory.
In a ruling on April 23, the court sided with Samsung Electronics, Samsung Display, Samsung Electro-Mechanics, Samsung SDI, and Samsung Welstory, canceling corrective orders and fines issued by the FTC.
The court found that the intra-group catering transactions did not provide excessive economic benefits to Samsung Welstory nor constitute unfair support that could significantly harm fair competition. It also said there was insufficient evidence to conclude that the deals were executed under directives from the group’s former strategy office.
The FTC had argued that from 2013 to 2021, Samsung affiliates awarded all cafeteria contracts to Samsung Welstory through private agreements at favorable terms, generating substantial profits for the affiliate.
However, the court noted that the institutional catering market requires service continuity and operational stability, and that higher margins could reflect efficiency and scale rather than unfair practices. It also stated there is no legal requirement for private companies to select catering providers through competitive bidding.
While acknowledging that certain favorable contract terms could raise concerns under fair trade law, the court ruled that the FTC’s decision—treating all transactions over the period as unfair—was not sufficiently justified.
The FTC may appeal the decision to the Supreme Court. Meanwhile, related criminal proceedings against former executives and the companies are ongoing.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
