South Korea's Fair Trade Commission Sets Trademark Licensing Fee Standards for 2.15 Trillion Won Market

LG-1.97%
SK-11.26%
Hanwha-1.38%
CJ0.28%
GS-0.87%
According to Yonhapinfomax, on July 13, South Korea's Fair Trade Commission established pricing standards for assessing trademark licensing fees paid among conglomerate subsidiaries, addressing a regulatory gap. The market for such intra-group transactions reached 2.15 trillion won in 2024, up 60 percent from 2020, with licensing agreements expanding from 46 to 72 conglomerate groups in the same period. Seven major groups—LG, SK, Hanwha, CJ, POSCO, Lotte, and GS—each paying over 100 billion won annually, accounted for 1.34 trillion won, or 62.4 percent of total transactions. The Fair Trade Commission has launched investigations into Hanwha and CJ regarding potential improper transfers of wealth to controlling families through trademark fee arrangements.
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