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| Article 19 (Prohibition on Illegal Cartel Conduct) |
| (1) | A business entity shall neither agree with any other business entity to jointly do the following acts that unfairly restrict competition (hereinafter referred to as "illegal cartel conduct") nor require any other business entity to engage in such illegal cartel conduct under contract, agreement, or arrangement or in any other manners: <Amended by Act No. 4513, Dec. 8, 1992; Act No. 4790, Dec. 22, 1994; Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999; Act No. 7315, Dec. 31, 2004; Act No. 8631, Aug. 3, 2007> |
| 1. | Determining, maintaining, or changing prices; |
| 2. | Determining terms and conditions for the transactions of goods or services, or for payments thereof; |
| 3. | Imposing limitations on production, delivery, transportation, or transaction of goods or limiting transaction of services; |
| 4. | Imposing limitations on the area in which it can make transactions or transaction partners; |
| 5. | Hindering or imposing limitations on the establishment or extension of facilities or the installation of equipment necessary to produce goods or to provide services; |
| 6. | Imposing limitations on kinds of, and standards for, goods or services to be produced or traded; |
| 7. | Jointly conducting and managing substantial business activities or establishing a company, etc. to jointly conduct and manage such substantial business activities; |
| 8. | Agreeing on a successful bidder, successful auctioneer, bidding price, successful tender or bid price, and other matters prescribed by Presidential Decree in a bidding or auction; |
| 9. | Any act substantially restricting competition in a particular business area by means of hindering or imposing limitations on the business activities or business of other business entities (including the business entities that has done such act), other than the acts provided for in subparagraphs 1 through 8. |
| (2) | Paragraph (1) shall not apply where illegal cartel conduct satisfies the conditions prescribed by Presidential Decree and is done for any of the following purposes subject to the prior-approval of the Fair Trade Commission: <Newly Inserted by Act No. 5235, Dec. 30, 1996> |
| 1. | Industrial rationalization; |
| 2. | Research and technical development; |
| 3. | Recovery from economic recession; |
| 4. | Industrial restructuring; |
| 5. | Rationalization of terms and conditions of transactions; |
| 6. | Improvement of competitiveness of small and medium enterprises. |
| (3) | Matters necessary in relation to standards, methods, and procedures for approval under paragraph (2) and modification of approved matters shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 5235, Dec. 30, 1996; Act No. 5813, Feb. 5, 1999> |
| (4) | Any contract, etc. made between business entities agreeing on any of the illegal cartel conduct provided for in paragraph (1) is null and void. |
| (5) | Where there is a reasonable probability to believe that two or more business entities jointly did any of the acts provided for in the subparagraphs of paragraph (1), taking into account all circumstances, such as the characteristic of the relevant business area, goods, or services, why the act was done from the economic perspectives and its effects on the economy, and how and how often the business entities have contacted, it is presumed that such business entities have agreed to do any of the acts provided for in the subparagraphs of paragraph (1). <Amended by Act No. 8631, Aug. 3, 2007> |
| (6) | The Fair Trade Commission may determine and publicly notify the guidelines for examination of the illegal cartel conduct. <Newly Inserted by Act No. 8631, Aug. 3, 2007> |