In March 2020, EJE LAW represented a supplier in a mediation proceeding before the Korea Fair Trade Mediation Agency, filed against a large-scale distributor for alleged violations of the Large-Scale Distribution Business Act. As a result, a substantial settlement was reached through mediation. This case was particularly noteworthy in that the supplier was an overseas luxury goods company and the distributor was a Korean duty-free retailer, raising the novel issue of whether the Large-Scale Distribution Business Act was even applicable under such circumstances. EJE LAW successfully argued that from a legal standpoint, the Act should apply to transactions conducted within Korea—even if one of the parties is a foreign luxury brand—and thereby secured a favorable mediation outcome from the counterparty.

Although this case, as a mediation proceeding, did not result in a formal legal determination on whether the Large-Scale Distribution Business Act is applicable to foreign suppliers with significant bargaining power, it is nevertheless meaningful as a precedent confirming that fair trade mediation procedures can serve as an effective dispute resolution mechanism in similar cases going forward.