The Seoul High Court rejected a request by Broadcom Inc. to overturn a corrective order and a substantial fine issued by the Korea Fair Trade Commission [1, 2].

The ruling reinforces South Korea's commitment to regulating the dominance of global semiconductor suppliers, a critical sector for the nation's economy.

The legal battle began after the Korea Fair Trade Commission imposed the fine in September 2023 [1]. The commission said the U.S. semiconductor company abused its market position by threatening to cut off the supply of semiconductor components to Samsung Electronics [1, 2]. This pressure was allegedly used to force Samsung into signing a long-term contract valued at more than $760 million per year [1].

Broadcom sued to cancel the penalty and the associated corrective order. However, the court, presided over by judges Kim Min-gi, Choi Hang-seok, and Park Young-ju of administrative division 6-1, ruled in favor of the regulator on May 13, 2026 [1, 2].

Reports on the exact amount of the fine vary between sources. Some reports cite the penalty as approximately 186 billion KRW [1], while another source lists the figure as 191 billion KRW [2]. The court's decision leaves the fine in place regardless of the slight discrepancy in reported totals.

The commission said the company's actions were a violation of the Fair Trade Act [1]. By leveraging its control over essential components, Broadcom attempted to secure guaranteed revenue through coercive contractual terms, a practice the court has now affirmed as illegal under South Korean law [1, 2].

“The Seoul High Court rejected a request by Broadcom Inc. to overturn a corrective order and a substantial fine”

This ruling signals that South Korean regulators and courts are willing to penalize global tech giants to protect domestic firms from coercive procurement practices. By upholding the fine, the court affirms that market dominance does not grant a company the right to dictate contract terms through threats of supply disruption, potentially deterring other semiconductor firms from similar tactics within the region.