A Study On The Extraterritorial Application Of Antitrust (Competition) Law

In recent days, we face the world economic exchanges which include the "WTO"s departure. The basic point of world economic exchanges has meant that national borders in the global economic system have effectively disappeared.The frequency of internationed movement of people, capital and goods, the growth of multinational corporations and the lack of international agreement or treaty regulating restrictive practices increase fundamentally the occasions for national Antitrust Laws and policies to clash.Each state has faced strong competition with other states according to UR. The competition is ever growing and the difference of power in competition is related to the fall emd rise of business. When a state has no independent competition policy in Competition Law, it is necessary that international competition rule. In fact, the OECD and other international organizations have argued that international competition rules govern all policy of global competition and trade. In addition to this problem, the issue of the international competition rules includes the extraterritorial application of Competition Law.The purpose of Competition Law is to maintain the competitive system of a country's market. But these days, there are many cases where the economic status of a national market may be affected by multinational corporations. And not only multinational corporations but also domestic corporations'activities are not restricted to their local markets. In fact, it is the extraterritorial application of Competition Law that regulates domestic competition laws even among foreign corporations.The extraterritorial application of Trade Laws is intended to expand acountry's jurisdiction over its own companies who are operating on foreign soil and sometimes: in definition of local trade practices. There are many possibilities of creating international conflict by invading territorial jurisdictions and sovereignty in the extraterritorial application case. These international conflicts may result from differences in each country's economic system. Each state has tried to reach bilateral agreements to prevent conflicts of sovereignty. As a result, some movement has appeared in the unification of Competition Law. But small progress has been made in implementing a global Competition Law.There are many models to resolve international conflicts inextraterritorial application cases. But the crucial point is to reducerestrictive business acts in advance.How we face the extraterritorial applications of Antitrust Law in USAand Competition Law in EU ,will determine how we best serve our own business interests and maintain our national sovereignty. We can consider some areas of resolution in the extraterritorial application of other countries'Competition LawsFirstly, there is our Competition Law (The regulation of Monopoly and Fair Trade Law)'s extraterritorial application problem today, our corporations are doing business in domestic and international markets. And many foreign multinational corporations are doing the same. In reality,the need for extraterritorial application is increasing. But the definition of extraterritorial application is not universal and varies from "effect theory "in USA to "objective territorial jurisdiction"in Germany. Whenapplying our Competition Law to extraterritorial areas, we resolve trade conflicts by passing transparent laws or by interpreting existing laws. Laws not subject to interpretation frequently lead to conflict. To enhance our negotiating position, we should be allowed to wake the final interpretation of law.Secondly, the corporation which is sued in foreign country can claim its behavior is reasonable and the situation inevitable. The corporation can defend itself citing "sovereignty compulsion rule", "comity theory", "state action principle" in a foreign court (especially in USA), in makingapplications of these three theories, there are some differences of scope in USA, EU, and so on.Thirdly, the Korean, Chinese governmen...