Law firm Veat conducts a specialized review of the fair trade law regarding fee agreements between subsidiaries.

Law firm Veat undertakes a legal review to determine whether acts of unfair trading and improper concerted actions violate the “Act on Distribution and Fair Trade” (hereinafter “Fair Trade Act”) regarding fees paid to subsidiaries in transactions with its subsidiaries.

​The client requested a review of all issues related to fees paid to subsidiaries, and the Veat Startup Advisory Team provided guidance on how to minimize future legal risks by comprehensively reviewing this matter.

Regarding whether the payment of fees constitutes unfair trading, the Veat Startup Advisory Team has detailed the fact that the Fair Trade Act prohibits support of assets, products, etc., or adding unreasonable additional trading stages in transactions with special relationships or other companies, and specifically prohibits paying excessive amounts to subsidiaries or paying higher amounts at trading stages in proportion to their roles.

Furthermore, the Veat Startup Advisory Team thoroughly reviewed whether this matter meets the conditions of unfair concerted action under the Fair Trade Act.

Regarding reviews of unlawful provisions in subsidiary fee contracts, etc., it is advisable to receive a comprehensive legal review through legal experts with abundant experience in corporate advisory to receive a comprehensive legal review to address issues that may arise in companies.

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When acts of unfair concerted action or unfair trade violate the Fair Trade Act

​Many companies worry about legal risks due to issues related to the Fair Trade Act during their business activities. In particular, whether there is a violation of the Fair Trade Act in contract formation in transactions with subsidiaries or external partners is one of the key items to be checked.

The Fair Trade Act aims to prevent abuse of dominant market positions of businesses, concentration of excessive economic power, and regulate unfair trading and unfair concerted actions to promote fair and free competition, foster creative business activities, protect consumers, and promote balanced development of the national economy.

​The Fair Trade Commission can require the cessation of the violation act, and can impose measures necessary for correction, such as disclosing the fact of receiving a correction order. It is recommended to obtain a thorough review through a Fair Trade lawyer, considering not only the provisions on fines and penalties, but also various systems under the Fair Trade Act.

Veat Startup Team provides consultations and solutions for various legal issues related to its transactions based on professional knowledge of the Fair Trade Act and extensive experience.

​If you need to review unfair trading and unfair concerted actions under the Fair Trade Act or require regular legal advice, please contact Law Firm Veat.

​Thank you.

Veat Law Firm