The Korean Monopoly Regulation and Fair Trade Act(the Act) prohibits a unfair assistance in Article 23 section 1 subsection 7. This is a unusual regulation without comparable provisions in foreign Antitrust Act.
The legislative intent is a prevent concentration of economic power of The Large Business Group(as it's called Chaebol). A company occupying favorable position in the relevant market, not due to its economic efficiency but due to economic benefit that the other company within the same business group provided may result in excluding competitors from the relevant market or preventing potential competitors from entering the relevant market. It may be a need to regulate certain transactions between affiliated company in a large business group.
In interpreting the rule on prohibiting unfair assistance, it's necessary to establish certain restrictions in standards so that the regulation are consistent with their legislative intent. In examining the legislative intent behind unfair assistance regulation, its theoretical basis and the necessity of such prohibition, the regulation must be transactions between affiliated companies in a large business group.