Regarding the case in which four companies, including semiconductor parts maker Broadcom Incorporated, forced Samsung Electronics to sign long-term contracts, the Fair Trade Commission has come up with a corrective plan that calls for banning Broadcom from forcing parts supply contracts or restricting parts options.
The Fair Trade Commission also proposed that Qualcomm raise a 20 billion won fund to support co-prosperity with small and medium-sized businesses in the Korean semiconductor sector.
The Fair Trade Commission announced on the 9th that it has prepared a tentative agreement on the abuse of trading status under review for four companies (hereinafter referred to as Broadcom), including Broadcom Incorporated, Broadcom Corporation, Avago Technologies International Sales Private Limited, and Avago Technologies Korea. This is a corrective measure that came four months after the FTC decided to start the consent resolution process at the end of August last year.
Consent settlement is a system in which a business operator restores to its original state and proposes reasonable corrective measures such as relief for damage to consumers and counterparties, and quickly closes the case without confirming whether it is illegal if the Fair Trade Commission recognizes its validity after collecting opinions from interested parties.
In addition, a plan to create a win-win fund worth 20 billion won was also proposed. It is a fund to support win-win growth of small and medium-sized businesses in the semiconductor sector. Through the fund, the Korea Semiconductor Industry Association will establish and operate tentatively named 'Semiconductor Human Resources Development Center' and 'Innovative Design Center' independently of Qualcomm.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
