February 12, 2025 /SemiMedia/ — South Korea's Fair Trade Commission (KFTC) announced on February 9 that it would file a lawsuit against Broadcom, accusing the company of abusing its market dominance by forcing Korean set-top box manufacturers to purchase its products. In response, Broadcom has proposed a series of corrective measures to avoid potential sanctions.

Broadcom's proposed actions include a commitment not to sign contracts that force mandatory purchases and an assurance that no penalties, such as contract cancellations, will be imposed if a purchase request is declined. Additionally, the company has proposed a coexistence fund worth 13 billion Korean won to support South Korea's fabless and system semiconductor industries, key sectors within the country's technology landscape.

The KFTC, South Korea's antitrust regulator, emphasized that the proposed measures were sufficient to restore competitive order in the country's system semiconductor market and support the growth of small and medium-sized enterprises. A KFTC official stated, "These measures will help restore market competition and support the growth of SMEs."

Broadcom, a global leader in semiconductor and infrastructure software solutions, is under scrutiny due to its significant influence in the semiconductor industry. The specific charges focus on the company’s dealings with Korean set-top box manufacturers, an industry heavily reliant on semiconductor components.

The case centers around the "consent decree" system, a regulatory mechanism that allows companies accused of anti-competitive behavior to voluntarily propose corrective measures without admitting guilt, thereby avoiding formal sanctions while compensating affected parties and preventing future violations.

Looking ahead, the KFTC plans to consult with stakeholders and present Broadcom's coexistence fund proposal as an official agenda item at a full commission meeting. This move is part of a broader strategy to support small and medium-sized enterprises in the semiconductor sector, aligning with South Korea's economic policies focused on innovation and diversification.