Reviewing a strong response plan for spreading false information about competitors' clients.

Law firm Veat received a request from accommodation company A (hereinafter referred to as the "Client") to review measures to respond to the competitor's spreading of false information.

The corporate advisory team of Law firm Veat explained that if the competitor spread false information about the Client's ability to pay, it could be subject to the crime of credit impairment and obstruction of business under the "Criminal Law."

Based on a clear understanding of criminal offenses, the corporate advisory team of Law firm Veat advised the Client on measures such as filing a criminal complaint against the competitor who spread false information, thereby imposing legal sanctions, and sending a certified letter with warnings and measures to prevent recurrence, focusing on the content needed to establish countermeasures against the spreading of false information that damages the Client's credit and obstructs their business.

What are credit impairment and obstruction of business?

Credit impairment is the crime of spreading false information or impairing someone’s credit by other deceptive means. It appears similar to defamation, but has different characteristics.

While defamation deals with the invasion of a person’s dignity in their social life, credit impairment can be seen as a crime against economic invasion. Therefore, the crime of credit impairment can be applied when spreading false information with the purpose of invading another’s economic interests.

Obstruction of business is the crime of obstructing a person’s business by spreading false information, other deceptive methods, or force. The crime of obstruction of business is intended to protect social and economic activities and involves actions targeting an office or business continuously performed based on a status in social life.

For the crime of obstruction of business to be established, it is necessary to have requirements such as spreading false information or committing deceptive or forceful acts. We recommend that you obtain accurate responses through consultation with a legal expert who has a deep understanding of criminal law and relevant case law, and who has handled various cases, to determine whether these requirements are met.

Law firm Veat provides professional solutions to legal issues quickly and accurately, based on the experience of advising various companies, and reviews appropriate legal sanctions methods.

Law firm Veat provides systematic legal advice that accurately identifies the characteristics of the Client's business services and the legal risks that have arisen, and provides support in the operation process, so if you need civil and criminal legal advice for your services, please feel free to contact Law firm Veat.

Thank you.
Law firm Veat