Seoul, Sept. 3, 2025 — South Korea’s Fair Trade Commission (KFTC) has finalized a settlement with U.S. chipmaker Broadcom to end allegedly unfair business practices in the domestic system semiconductor market and to promote cooperation with local small and medium-sized enterprises (SMEs).
The regulator said on Monday that it had approved a consent decree addressing Broadcom’s conduct, which had required Korean set-top box makers to exclusively use its system-on-chip (SoC) components. Such practices, the KFTC noted, may have violated the country’s Fair Trade Act by restricting rivals’ access to the market.
Under the agreement, Broadcom is prohibited from forcing Korean manufacturers to buy only its chips, from imposing conditions that more than half of a customer’s semiconductor purchases come from Broadcom, or from penalizing companies that also use competitors’ products. The company must also establish an internal compliance program, conduct annual antitrust training for staff, and report progress to the KFTC through 2031.
As part of its commitments, Broadcom will contribute ₩13 billion (about US$10 million) to a fund managed by the Korea Semiconductor Industry Association. The fund will support local SMEs through education and training programs, access to essential electronic design automation (EDA) software for chip design, and marketing assistance such as participation in trade fairs.
The KFTC stressed that the deal balances corrective measures with industry support, while avoiding lengthy litigation. The regulator also noted that competition authorities in both the European Union and the United States had previously resolved similar cases against Broadcom through settlement.
“This decision not only halts exclusionary business practices but also fosters growth opportunities for domestic semiconductor SMEs, strengthening the broader industry ecosystem,” the commission said in a statement.
The regulator will monitor Broadcom’s compliance in cooperation with the Korea Fair Trade Mediation Agency and pledged to continue cracking down on unfair trade practices in the semiconductor sector.
