[Antitrust] Successful Defense in Constitutional Review of Retroactive Legislation under the Agency Act

SEO & LEE successfully obtained a Constitutional Court ruling affirming that the retroactive application of the Addendum to the Agency Act is constitutional.

The case concerned whether the Agency Act could be applied to past conduct involving the passing on of sales promotion costs, and whether such application constituted impermissible retroactive legislation or infringement of property rights. The Seoul High Court referred the matter for constitutional review.

SEO & LEE argued that the conduct arose from a continuous transactional relationship, that the regulatory impact was not substantially different from the Fair Trade Act, and that the public interest in protecting agents and ensuring fair trade order was significant.

The Constitutional Court accepted these arguments, holding that limited retroactive application may be exceptionally permitted, and upheld the constitutionality of the provision.

This decision is expected to serve as an important precedent clarifying the permissible scope of retroactive legislation and strengthening regulatory effectiveness in fair trade and agency transactions.