Reiwa 5 Special (Wa) No. 311, Violation of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade

In 2025, the Tokyo District Court adjudicated a landmark criminal antitrust case under docket Reiwa 5 Special (Wa) No. 311. The Japan Fair Trade Commission accused Korea Chem Japan K.K., a subsidiary of a South Korean conglomerate, and its president Park Jin-ho of private monopolization. Between 2023 and 2025, the company allegedly forced Japanese semiconductor manufacturers into exclusive supply contracts for high-purity etching gases, thereby excluding competitors Nippon Special Gases Co. and Kyoto Chemicals Ltd. from the market. Following a criminal complaint by the JFTC, the Tokyo District Public Prosecutors Office indicted the firm and its executive. The trial focused on market definition and anticompetitive foreclosure effects. The court convicted both defendants, imposing a fine and a suspended prison sentence, marking the first criminal punishment of a foreign-owned company for unilateral abuse of dominance in Japan.

Tokyo District Court found Korea Chem Japan K.K. guilty and fined it 200 million yen; President Park Jin-ho was sentenced to 18 months in prison, suspended for three years.

Whether the exclusive supply agreements constituted private monopolization under the Anti-Monopoly Act; whether the relevant market should be defined as high-purity etching gases for semiconductors or a broader chemical market; and whether the conduct substantially restrained competition by foreclosing Japanese rivals.

The ruling heightened tensions in Japan-South Korea economic relations and triggered diplomatic protests from Seoul. It prompted foreign multinationals operating in Japan to overhaul antitrust compliance programs and sparked debate over clearer guidelines for abuse of dominance. The JFTC subsequently announced more rigorous scrutiny of exclusionary practices by dominant firms.