South Korea’s Supreme Court has dismissed Broadcom’s appeal and upheld the penalty imposed by the Korea Fair Trade Commission (KFTC) for using its market position to force Samsung Electronics into signing a long-term supply contract in 2020. With the ruling, reported on November 2, 2026, by BusinessKorea, the US chipmaker exhausts its judicial options against a corrective order and a fine the South Korean press puts at around 19.1 billion won.
The Broadcom-vs-South Korean regulator case in 30 seconds
- The Supreme Court upholds the Seoul High Court’s ruling, which in May 2026 rejected all of Broadcom’s claims.
- The KFTC concluded in 2023 that Broadcom forced Samsung to purchase at least $760 million worth of components a year for three years.
- To apply pressure, it suspended order approvals, shipments, and part of its technical support.
- The regulator calculated that Samsung incurred at least $160 million in additional costs.
According to BusinessKorea, the Supreme Court’s First Division, presided over by Justice Cheon Dae-yeop, found “no problem” with the ruling under appeal and dismissed the appeal filed by the four plaintiff companies, among them Broadcom’s US headquarters. The companies had sought to overturn the corrective order and the payment of the financial penalty. Broadcom has made no public statement about the ruling in the sources consulted.
A $760-million-a-year contract signed under pressure
The case dates back to 2020. According to the facts the KFTC found proven, Broadcom demanded that Samsung agree to purchase at least $760 million worth of components a year for three years, starting in 2021, and to compensate Broadcom for any shortfall if it didn’t hit that figure. These were chips for Samsung’s smartphones, including wireless connectivity and radio-frequency components.
When Samsung refused, still according to the regulator, Broadcom suspended order approvals and halted shipments, component production, and part of its technical support. Facing the risk of running out of parts to make phones, Samsung signed the contract in March 2020. The KFTC concluded that this restricted Samsung’s freedom to choose suppliers, that Broadcom blocked its competitors, and that Samsung incurred at least $160 million in additional costs, at the exchange rate of the time.
Before the courts, Broadcom argued that Samsung was a much larger trading partner than itself and that the contract was the result of a negotiation between equals. The Seoul High Court rejected that argument: it found it proven that Broadcom forced the deal by arbitrarily suspending supply, and that the contract was unbalanced to Samsung’s detriment.
From a failed voluntary settlement to a fine
The case went through a negotiation phase before ending in a fine. Broadcom offered the KFTC a consent decree, a mechanism that allows an investigation to be closed without a penalty in exchange for commitments and remedial measures. The regulator rejected the final proposal in June 2023, concluding it did not adequately offset the harm, and in September of that year imposed the corrective order and the financial penalty.
Under the South Korean system, KFTC rulings are appealed directly to the Seoul High Court, which acts as the first instance, and then to the Supreme Court. Broadcom lost at the Seoul High Court on May 13, 2026, which rejected all of its claims and ordered it to pay costs, and has now also lost at the Supreme Court, making the penalty final.
Figures that don’t line up, and what’s still unknown
There’s a discrepancy in the fine amount. The South Korean press in 2023 and the Seoul High Court’s ruling put it at around 19.1 billion won, while BusinessKorea now reports 18.664 billion won, around $14 million. The sources consulted don’t explain the gap, which could stem from a later recalculation of the penalty. The exact date of the Supreme Court’s ruling isn’t clear either: BusinessKorea mentions October 27 in referring to the confirmation of the sentence, without specifying whether that’s the date of the decision itself.
For Broadcom, the amount is modest relative to its size, but the case sets a precedent for how Asian regulators treat the conditions major chip suppliers impose on device makers. The company has already racked up other antitrust cases over its commercial practices with device manufacturers, including in the European Union and the United States, which were closed with commitments. In South Korea, the ruling could also give Samsung grounds to pursue civil damages, though there’s no public indication that it has done so.
Frequently asked questions
Why did South Korea penalize Broadcom?
Because the Korea Fair Trade Commission concluded that Broadcom abused its market position to force Samsung into signing a 2020 contract requiring minimum annual purchases of $760 million worth of components for three years, suspending shipments and order approvals to pressure it.
How much is Broadcom’s fine?
The South Korean press and the Seoul High Court’s ruling put it at around 19.1 billion won; BusinessKorea reports 18.664 billion won, around $14 million. It comes with a corrective order.
Can Broadcom appeal again?
Not through ordinary channels. With the Supreme Court’s dismissal, the KFTC’s penalty and the Seoul High Court’s ruling are now final.
Sources:
- BusinessKorea: Broadcom Loses Supreme Court Appeal with Pressure on Samsung (11/02/2026)
- Asia Economy: Seoul High Court dismisses Broadcom’s lawsuit (05/13/2026)
- Reuters via The Star: KFTC fines Broadcom (09/21/2023)
- Digital Policy Alert: rejection of the consent decree (2023)
This article is also available in Spanish: «Broadcom pierde en el Supremo surcoreano el caso por presionar a Samsung», on revistacloud.com.
