SEOUL - US SEMICONDUCTOR giant Intel Corporation said on Wednesday it has launched a court challenge against a US$18 million (S$27 million) fine imposed by South Korea's anti-trust watchdog for unfair trading.

Intel said it has filed a formal complaint with the Seoul High Court to overturn the ruling by the Korea Fair Trade Commission (KFTC).

The commission announced in June it had fined Intel 26 billion won (S$27 million). It accused it of offering rebates to local clients and pressuring them not to buy rival chips.

The anti-trust probe began in June 2005 after rivals accused Intel of using its commercial muscle in dealings with local manufacturers.

Intel said in a statement the KFTC 'has made substantial factual and legal errors in formulating its final written opinion.' It said the Korean anti-trust body 'failed to understand the dynamics, pricing and competition in the microprocessor market.'

Intel added: 'Through this (court) process, Intel believes that it will be able to demonstrate that its business practices are both fair and lawful.' Intel has been facing anti-trust scrutiny stemming from its tactics in competing with Advanced Micro Devices (AMD) in the market for microprocessors.

In addition to South Korea, authorities in Europe and Japan have accused the company of violating anti-trust laws.

Intel's tactics are the subject of a private anti-trust suit filed by AMD in a US federal court in Delaware in 2005. -- AFP