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Multinational Chemicals Company Ends Dispute with Third Party Distributor in KOFAIR Mediated Resolution


Kim & Chang represented a multinational chemicals company in its dispute with a third-party distributor before the Korea Fair Trade Mediation Agency (the “KOFAIR”), which resulted in a successful resolution.

The dispute involved a complaint filed by the distributor, arguing that the company (i) engaged in unfair refusal to deal by sending it a notice terminating their distributor agreement, and (ii) imposed disadvantages against it and interfered in its business activities during the term of their agreement. In response, our firm proactively explained the relevant facts of the case (e.g., the background regarding the termination of the distributor agreement and market conditions), and demonstrated that the company’s conduct did not legally constitute an unfair refusal to deal.

As a result of our firm’s effective response, the KOFAIR, in its mediation decision, dismissed most of the distributor’s claims, resulting in a successful resolution of the dispute for the company. This case is meaningful in that we were able to persuade the KOFAIR based on reasonable evidence to swiftly resolve a dispute that would have otherwise continued for a significant period of time, including a separate investigation by the Korea Fair Trade Commission or follow-up civil litigation.