In June 2022, the Korea Fair Trade Commission (the “KFTC”) issued a corrective order on the International Air Transport Association (the “IATA”) to revise or delete a provision that formed part of contracts entered into between the IATA and third parties on behalf of certain interested parties (the “Provision”), arguing that it constituted an “unfair provision” in violation of the Standardized Contract Regulation Act (the “SCRA”). In this case, Kim & Chang represented the IATA (up to the Supreme Court level) for the revocation of the corrective order imposed by the KFTC.

Our firm developed and presented substantive arguments based on complex legal analysis and fact-finding with regard to the issue of whether the Provision constituted a standardized contract in violation of the SCRA. While arguing that the Provision did not constitute a standardized contract, our firm presented detailed analysis and evidence on the history of changes in the global market and technological environment, the transaction and settlement structure between parties, the impact of the abolishment of the Provision on small and medium-sized companies and consumers, etc., through extensive research and interviews with stakeholders. We successfully argued that the Provision was not unfair and did not have any negative impact on the industry. The Seoul High Court rendered a decision in favor of the IATA, revoking the KFTC’s corrective order (i.e., to delete or revise the Provision) in its entirety, and the Supreme Court eventually dismissed the KFTC’s appeal.