The Korea Fair Trade Commission (KFTC) is asking for public feedback on a proposed settlement with Broadcom Inc., following allegations that the company restricted fair competition in Korea’s set-top box market.
The public consultation period will run for 31 days, from April 7 to May 7, 2025, and the final decision will be made after reviewing feedback from relevant ministries, industry stakeholders, and the general public.
What’s the Case About?
The KFTC has been investigating Broadcom for allegedly forcing Korean set-top box makers to use only its system-on-chip (SoC) products. This kind of behavior, if proven, would be a violation of Korea’s Monopoly Regulation and Fair Trade Act.
Broadcom applied for a consent resolution—a kind of voluntary settlement—in October 2024. The KFTC accepted the application and has since worked with Broadcom to draft a proposed agreement.
What’s in the Proposed Settlement?
Here’s what Broadcom has agreed to do if the resolution is finalized:
- End Exclusive Dealings
Broadcom will stop requiring Korean set-top box makers to use only its chips. Companies will be free to buy from other suppliers without facing contract changes or penalties. - No More Purchase Quotas
Broadcom won’t demand that companies buy more than 50% of their SoC needs from them. It also won’t offer special prices or services as rewards for doing so. - No Retaliation
If a company decides to buy from Broadcom’s competitors, Broadcom won’t delay, stop, or cancel deliveries, or take away any previously promised benefits. - Stronger Compliance
Broadcom will set up a compliance program to train staff about fair trade laws and report to the KFTC every year until 2031.
Supporting Korea’s Semiconductor Ecosystem
As part of the agreement, Broadcom has also promised to support Korea’s semiconductor industry, especially small and medium-sized enterprises (SMEs). It plans to:
- Help train skilled workers in the chip industry
- Provide important design software (EDA tools) to fabless chipmakers
- Support local chip companies in marketing and trade shows
To fund these initiatives, Broadcom will contribute about KRW 13 billion.
How to Submit Opinions
The KFTC has published the draft agreement on its website (www.ftc.go.kr → News & Updates → Notices & Announcements). Anyone interested—whether companies, experts, or members of the public—can submit comments during the consultation period.
After May 7, the KFTC will review all input before making a final decision.
