Dunlop Korea Fined 18.6 Billion Won for Retail Price Control

Dunlop Sports Korea (hereinafter "Dunlop"), an importer and distributor of golf clubs, has been fined 1.865 billion won by the Korea Fair Trade Commission (hereinafter "KFTC") for forcing dealerships to maintain a minimum resale price. Along with the fine, Dunlop was also issued a corrective order.

In an announcement on the 3rd, the KFTC revealed that between 2020 and 2023, Dunlop compelled its dealerships to adhere to fixed resale prices, imposing penalties such as supply suspension and financial support reduction for noncompliance.

To monitor whether dealerships were selling products below the designated prices, Dunlop deployed investigators disguised as customers to visit stores and conducted daily online price checks.

Additionally, Dunlop prohibited dealerships from reselling golf clubs to non-affiliated retailers and sanctioned those who violated this rule by cutting off product supplies. The KFTC determined that such actions unlawfully restricted price competition in the distribution sector.

The KFTC previously took action against similar resale price maintenance practices in 2009, penalizing six golf club distributors. At that time, the highest fine imposed was 400 million won. In contrast, the significantly higher fine imposed on Dunlop reflects stricter measures in response to repeated violations despite past enforcement actions.

A KFTC official stated, "This measure is expected to raise awareness of unfair trade practices among distributors and contribute to a market environment where consumers can purchase golf clubs at more reasonable prices."


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Dunlop Korea Fined 18.6 Billion Won for Retail Price Control