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Photo: Broadcom Headquarters (courtesy of Broadcom) |
[Alpha Biz= Kim Jisun] Seoul, South Korea – December 3, 2025 – The Korea Fair Trade Commission (KFTC) announced today that it has finalized a consent decree with U.S.-based Broadcom Inc. regarding allegations of unfair business practices against Korean manufacturers. Under the agreement, Broadcom will create a mutual growth fund worth KRW 13 billion (approximately USD 10 million) instead of facing direct sanctions.
The KFTC had been investigating Broadcom for allegedly requiring domestic set-top box manufacturers to use only Broadcom components. Rather than contesting the charges, Broadcom submitted a voluntary consent proposal last October, which has now been approved.
As part of the settlement, Broadcom will:
Establish a KRW 13 billion fund to support semiconductor talent development and provide design automation software for small and mid-sized enterprises (SMEs) in system semiconductors.
Operate the support programs in partnership with the Korea Semiconductor Industry Association.
Refrain from compelling manufacturers to purchase Broadcom system semiconductors exclusively or penalizing them for transactions with competitors.
Implement a compliance program, including mandatory annual training on Korea’s Fair Trade Act, and report annually to the KFTC until 2031.
The KFTC highlighted that similar cases were resolved through consent decrees by the European Commission (EC) and the U.S. Federal Trade Commission (FTC). The regulator concluded that Broadcom’s corrective and cooperative measures are in the public interest and will help restore fair competition in Korea’s system semiconductor market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
