Do national regulators enforce rules against entities operating abroad?
Article 2-2 of the FTL imposes extraterritorial jurisdiction for acts that occur overseas but have an effect on the Korean domestic market (i.e. Korean customers). The Korean Supreme Court has stated that the 'effect on the Korean market' must be limited to cases where there is a direct, considerable, and reasonably foreseeable effect on the Korean market. The Supreme Court added that such determination should be based on a comprehensive and case-by-case review of various factors, including the substance and intent of the conduct, the characteristics of the services or goods at issue, the transaction structure and how it affects the Korean market, etc.
Most discussions concerning the extraterritorial application of the FTL are in the context of cartel enforcement. While we are not aware of any specific precedent in the context of prize promotions, we believe it would be possible for prize promotions originating overseas, targeting Korean customers, to be subject to enforcement under the FTL and other applicable regulations.