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Article 23 of the Monopoly Regulation and Fair Trade Act prohibits the “abuse of superior bargaining power- a type of ‘unfair trade practices’”. The Korea Fair Trade Commission (the “KFTC”), as the administrative body that has power to impose corrective measures and administrative fines on companies that concluded unfair contract terms and conditions, may restrain the principle of private autonomy through such legal enforcement. According to the Supreme Court of Korea, Decision 2012du18325, September 10, 2015, actions must at least have a “relevance to trade order” in order to find factors that hinder fair trade. Also, when the counterparty is a consumer and if there is a likelihood of harm to many unspecified consumers resulting from the actions of companies with superior bargaining power, such “relevance to trade order” is likely to be satisfied. The Court ruled a change in the KFTC’s practices to consider “relevance to trade order” which have not accounted for until now. The term “relevance to trade order” means that unfair transactions have a substantial adverse or negative effect on transactions between individuals in the context of society as a whole.

In the abovementioned ruling, the Court held that an abuse of superior bargaining power would not be found in the absence of “relevance to trade order.” This may be criticized that it is difficult for the transaction partners under unfair terms and conditions to receive legal remedies. To resolve this issue, if necessary, the enactment of a special civil law, which allows disadvantaged transactions partners to demand an injunction against those abuse their superior bargaining power, shall be considered as an alternative