'Real Estate Listing Information Abuse' Naver Fined 200 Million Won in First Trial

"Strengthened monopolistic position as a market-dominant business operator... Significant damage incurred"

Naver Headquarters Building [Photo by Park Dong-ju] Naver Headquarters Building in Bundang-gu, Seongnam-si. 2021.11.19

Naver, which was indicted for abusing its power over real estate listing companies and attempting to block the market entry of its competitor Kakao, has been sentenced to a fine in the first trial.

On the 18th, Judge Im Hye-won of the Criminal Division 19 of the Seoul Central District Court fined Naver Corporation 200 million won for violating the Monopoly Regulation and Fair Trade Act (Fair Trade Act) due to abuse of its market-dominant position.

The court pointed out, "Naver strengthened its monopolistic position as a market-dominant business operator by blocking potential competitors from affiliated real estate companies," and added, "Business opportunities for real estate information companies were significantly limited, and the social ripple effects and damages are considerable."

Naver, which provided listing information in partnership with real estate information companies, added a clause to its renewed contracts in February 2015 stating, "Do not provide real estate listing information provided to Naver to any third party," when Kakao approached affiliated companies seeking a similar business model.

In December 2020, the Fair Trade Commission imposed a corrective order and a surcharge of 1.032 billion won on Naver, stating that Naver had violated the Fair Trade Act from May 2015 to 2017 through such actions.

Subsequently, the prosecution launched an investigation after the Ministry of SMEs and Startups exercised its right to request a complaint from the Fair Trade Commission in November 2021. The prosecution subsequently filed a lawsuit against Naver in September of the following year.

An administrative lawsuit filed by Naver seeking to cancel the surcharge imposed by the Fair Trade Commission is currently pending at the Seoul High Court. Yonhap News