May 14, 2025 – Seoul
South Korea’s Fair Trade Commission (KFTC) has imposed a corrective order and a fine of 2.07 billion won (USD 1,531,800) on auto care product maker Bullsone Co., Ltd. for engaging in resale price maintenance, unfair trading conditions, and interfering with dealers’ business activities.
The KFTC found that Bullsone forced its distributors to comply with minimum resale prices, prohibited online sales of dealer-exclusive products, and demanded sensitive business data including profit margins and sales details.
Price-Fixing and Online Sales Ban
Since 2017, Bullsone had required distributors to sell its fuel additive product “Bullsone Shot Standard” at or above a set minimum price—even extending enforcement to second-tier resellers. The company monitored online and offline prices, and penalized violators through order suspensions and withdrawal of promotional support.
To obscure its role, Bullsone orchestrated a system where its dealer council would formally request resale price controls, allowing the company to claim the restrictions originated externally.
Bullsone also restricted online sales of “Bullsone Shot Pro” and “Crystal Quick Coat,” both designated as dealer-only products. Dealers selling these online faced tracking through product serial codes and punitive actions.
Additionally, Bullsone blacklisted resellers suspected of or previously engaged in “乱卖” (unauthorized discounting), instructing its distributors not to supply products to them.
Intrusion into Dealer Operations
The company was also found to have demanded detailed transactional and profitability data from its dealers through its Business Sales Management system. This included product-level sales and profit metrics not automatically captured, which KFTC said constituted undue interference and risked placing dealers at a disadvantage in negotiations.
Legal Violations and Sanctions
The KFTC ruled that Bullsone violated:
- Article 46 of the Monopoly Regulation and Fair Trade Act (Resale Price Maintenance),
- Article 45 (Unfair Trade Practices: Restrictive Conditions),
- Article 10 of the Fair Agency Transactions Act (Unjust Interference in Business Activities).
The Commission has ordered Bullsone to cease such conduct, notify its dealers of the corrective action, and implement fair trade compliance training. Bullsone must also update its systems to prevent access to unauthorized sales data.
Market Impact
With product market shares ranging from 45.7% to 92.5% in large retailers as of 2022, Bullsone holds a dominant position in South Korea’s automotive care products market. The KFTC emphasized that its decision aims to restore competition and ensure consumer access to fair prices.
“This enforcement action sends a clear message,” the Commission stated. “Restricting market competition and interfering with dealer autonomy will not be tolerated.”
