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Korea fined Qualcomm ₩1.03 trillion — a record that survived to the Supreme Court

The KFTC fined Qualcomm ₩1.03 trillion for abusing dominance in modem chips, and the Supreme Court made it stick.

Qualcomm · 2016-12-28

What happened

On 28 December 2016, South Korea's competition regulator, the KFTC, fined Qualcomm ₩1.03 trillion — about US$854 million — for abusing its dominant position in the market for modem chipsets and its patent-licensing business. It was the largest penalty the KFTC had ever imposed on a single company.

The regulator found that Qualcomm charged excessive licensing fees for its standard-essential patents and refused to licence those patents to rival chipmakers on fair, reasonable and non-discriminatory terms. Because modem makers had no practical alternative to Qualcomm's technology, the practices were deemed an abuse of dominance under Korea's Monopoly Regulation and Fair Trade Act.

Qualcomm rejected the decision and challenged it through the Korean courts, arguing that its licensing model was lawful and that the fine was disproportionate. The case worked its way up through the Seoul High Court as the company sought to overturn the KFTC's finding.

On 13 April 2023, the Supreme Court of Korea finalized the penalty, confirming a redesigned fine of around ₩1 trillion — roughly US$760.8 million. The ruling ended years of litigation and left Qualcomm liable for one of the largest competition fines in Korean history.

Why it happened

  • Qualcomm treated its standard-essential patents as a toll booth, charging high fees and denying rivals access on fair terms.
  • It assumed its dominant position would protect the model from competition enforcement, and litigated the fine instead of renegotiating.
What it cost₩1.03T KFTC fine, upheld by Supreme Court at ₩1Tcostly

The lesson

A standard-essential patent is a choke point — charging for it as if it were optional invites regulators, and the fine can survive all the way up.

Aftermath

The Supreme Court's 2023 ruling locked in the penalty, though it trimmed the amount from the original ₩1.03 trillion to roughly ₩1 trillion. The case became a reference point for how enforcers treat standard-essential patent licensing, alongside Qualcomm's separate antitrust battles in the US, China and Europe. For Qualcomm, the decision confirmed that a licensing model built on a must-use patent would be policed wherever it held dominance.

Sources

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